Ronan Bradley's FinanceTech Directions

Ronan Bradley

CEP, Algorithmic trading and the leading edge of technology

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The announcement by Bank of China International’s selection of Progress Apama’s CEP/algorithmic trading platform highlights a number of trends in financial services.

(1)This announcement reinforces the importance of algorithmic trading for all of the Complex Event Processing vendors. While there are other applications for the technology and a longer term more general application of CEP a part of a SOA control layer (which Steve Cragg’s previous blogged about in the context of EDA), right now algorithmic trading is the most natural and, I suspect, the dominant application of this technology.

(2) It reflects the increasing requirement for leading edge high performance/low latency technology in response to the challenges of increased volume, globalisation and connectivity. Sorry Nick Carr – in this space technology does matter. The impact of getting it wrong is high as can seen from yesterday’s incident when the London Stock Exchange suspended trading due to connectivity problems.

(3) These requirements are also forcing the Asian commodity exchanges to increase the focus on technology ( as covered here) which can be tied back to increased use of algorthmic trading. To quote Markus Gerdien, executive vice president of market technology at Nasdaq OMX,

"all the international brokers have deployed [algorithmic strategies] for their trading, and the technology is becoming more and more available for local brokers and dealers. The exchange itself needs to deal with an automated order flow that can be very high."

Ronan

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Ronan Bradley's blog on infrastructure technology news and trends in the retail banking, captial markets and beyond.

Ronan Bradley

Ronan Bradley has specialized in business integration technologies and their application for over 15 years, most recently as CEO of ESB startup PolarLake and prior to that as Vice President of Product Management in IONA Technologies. A widely published writer and consultant, Ronan now focuses on addressing the key business and technology issues associated with the adoption of SOA in addition to lecturing at The Dublin Institute of Technology. Ronan can be reached at ronan@ebizq.net


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