1 August 2013
Deep-Pocketed Funds Give Up on Speed Game
The Wall Street Journal discusses the shifts in the trading game, “from speed to size”, and how firms of different sizes allocate IT budgets to take better advantage of big data. The article cites Alexei Miller, EVP at DataArt.
“A focus on size, specifically using “big data” to get a trading advantage, has become a major component of research budgets at hedge funds, asset managers and even some large banks over the last year. The spending push is a shift from just a few years ago, when firms’ research and development budgets were focused on making sure they were first in line on every trade.
As the spending shifts, a new industry is emerging to serve these deep-pocketed investors and their high-tech trading systems. Established technology giants… as well as emerging niche players are pitching new products and services that promise the latest trading keys on everything from regional home prices to social media.
Smaller firms like… DataArt, a software development company that counts several large hedge funds as its clients, can have an edge when dealing with niche financial firms, who may prefer to work with a smaller technology company that’s less likely to share knowledge gained on a project with other clients.
“We do a lot of work for credit and mortgage-backed funds. Just looking at a lot of strategies that involve deeper data to analyze different levels of a credit deal,” said Alexei Miller, DataArt’s founder.”
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