Xenomorph
  • Solutions
  • Technology
  • Customers
  • Resources
  • News
  • About Us
  • Request a Demo
  • Search
  • Menu Menu
  • Twitter
  • LinkedIn

News

An Enterprise Data Management System for New Trading Strategies

The challenges of managing data for new trading strategies and future-proofing your enterprise data management system and processes.

Many asset or fund managers are looking to diversify their strategies when looking for trading opportunities within financial markets. Part of that might be due to reduced margins in older methodologies or increased competition. New strategies often encompass a wider range of data and/or analytics to allow creation of more advanced or bespoke trading ideas. Those institutions who are ahead of the curve in that respect can look at improved time-to-market of those ideas and competitive advantage.

Historically, enterprise data management systems (EDM) have had a “traditional” data model built around reference data and market data – such as prices and rates – on which trading strategies can be built. EDM systems vendors have long-established products which encompass traditional data models. The challenge presented is the extension of those data models to include additional data pertaining to the new strategies.

This new data typically might be company information, assets, economic measures or other fundamentals. It might also be very specific information based upon companies in a particular industry sector, such as energy or technology. This data falls outside the ‘traditional’ data model of nearly all EDM systems as they were designed for a fairly general purpose and not for niche or specialized markets.

Those enterprise data management systems that are based upon older, stringent relational database management technology (RDBMS) tend to require significant development effort to include this new data as their existing data models are generally fixed towards the perceived ‘standard’ model for asset types such as an equity or a bond. Coupled with that is the requirement to be able to store data of any type, over any frequency and from multiple sources. In addition, the various EDM system tools and APIs need to access that data and make it available for users to consume and analyze.

The ideal scenario is an enterprise data management system which is totally independent of the data that is stored within it, in the sense that the data model can quickly and easily be extended to include pretty much anything. More importantly, the same EDM software must be able to work on this new data without change, and users of the system should be able to configure any new trading strategies without the EDM software vendor needing to be involved – thus minimizing costs and promoting business user ownership. This approach also reduces the perennial headaches of backward compatibility and upgrades, which for many EDM system users present huge problems and unnecessary monetary and opportunity costs if the data model has been customized or extended by users and is now ‘out of step’ with the original supplied by the vendor.

In essence, we need the enterprise data management system to ultimately be ‘owned’ by the users, with the knowledge that they can configure their new trading strategies as and when they need them, on their own and without fear that when a newer version of the software becomes available everything they have done will either be broken or require significant re-work at a huge cost. The EDM system should grow with the firm and be future-proof to all the data management requirements and business initiatives that may be needed in new areas of the market.

Share this entry
  • Share on Twitter
  • Share on LinkedIn
  • Share by Mail
https://www.xenomorph.com/wp-content/uploads/trading-strategies.jpg 628 1200 Matt Pick https://www.xenomorph.com/wp-content/uploads/2019/07/logo-xeno.png Matt Pick2020-11-03 10:05:132020-10-30 16:36:17An Enterprise Data Management System for New Trading Strategies

Categories

  • Blog Post
  • Events
  • Press Release

Archives

About Xenomorph

Xenomorph provides trusted data management solutions to many of the world’s leading financial institutions.

With more than two decades’ experience managing large volumes of complex data and analytics we can quickly configure a solution for your requirements.

Xenomorph London

4th Floor
10 Lloyd’s Avenue
London EC3N 3AJ
UK

+44 (0)20 7614 8600

info@xenomorph.com

map

Xenomorph New York

45 Rockefeller Plaza, FL 20
New York
NY 10111
USA

+1-212-401-7894

info@xenomorph.com

map


Xenomorph Boston

53 State Street
Suite 500
Boston, MA 02109
USA

+1-617-465-2050

info@xenomorph.com

map

© Xenomorph Software Ltd 2022 - Privacy policy | Anti-Bribery Policy
Scroll to top
This website uses cookies to improve your experience. If you continue to use the site we will assume your consent. ACCEPTRead More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
SAVE & ACCEPT