For financial managers, data can be both a blessing and a curse: on the one hand, we need data to improve our strategy; on the other, we have to somehow collect, process, and manage it. Thankfully, Event Stream Processing (ESP) software can help us process the flow of data and make it work for us. Here’s how.
What is Event Stream Processing?
ESP is a technology by which you can quickly process a flow of thousands of different data points per second, such as market prices, positions, trades execution, risk control, and pieces of market news. These can be from any source (e.g. the brokers, banks, and data providers).
Throughout this process, the data is collected, transformed, analysed, and enriched depending on your custom parameters, and then used for calculations and actions according to your strategy. In other words, it can help you turn your financial strategy into a powerful code.
What’s the best type of Financial Software?
There are many types of software out there used in the financial industry, with the majority of them falling under one of three categories:
- off-the-shelf software that isn’t customisable,
- customisable software that isn’t affordable (at least for most SMEs), or
- in-house development, that can be complex and expensive for SMEs.
Our software is different.
We have created original software blueprints that can automate the most common processes financial companies undertake, such as multiple venues connectivity, fast electronic trading, reconciliation, analytics, live portfolio and risk management, and intra-day strategy and portfolio back testing.
Although these are pre-programmed, they are highly customisable, giving us the ability to tailor the ESP software to financial managers’ exact needs.
We Collaborate with TIBCO™ on Our Framework Powered by ESP Technology
These components hold within them complex code that can be used to simultaneously manage your data flow from multiple sources, normalise it, and quickly process large amounts of data.
The best part is that ESP software by TIBCO™ with the Wakett Framework ensures a more powerful and sustainable approach to your data that places the benefits of event stream processing directly into your hands.
- It saves you up to 50% of the time it normally takes developers to create trading software applications from scratch.
- It doesn’t require you to employ highly-skilled, in-house senior developers.
- It is completely customisable, removing the cons of off-the-shelf software.
- It costs less than many customisable software solutions currently on the market, and developing and maintaining everything in house
Event Stream Processing Examples
So, at this point, you may be wondering what this type of software could be used for. The answer is many things, but let’s take live portfolio management and back testing as a concrete example.
This is a process through which you need to combine live data sources for multiple asset classes, apply valuation and risk control in real-time to them, and send orders when needed. In addition, this process allows you to test how your portfolio would have fared when using your current investment strategy in past scenarios.
Understandably, software that can do this requires some complex algorithms to get right, especially when trying to reduce the discrepancy between back testing vs real-time trading, like minimising execution and calculation latencies, integrating risk limits, synchronising processes, and applying liquidity analysis.
Our ESP software does that by using the same algorithms for both real-time trading and portfolio back testing, allowing you to synchronise intra-day data, manage time zones, reduce latency, and even collect up to 1,440 intra-day valuation and risk metric points per day or at tick level if needed!
So, what are you waiting for? Get in touch with us to discover how our ESP framework software can help you achieve your goals!