Trends: All Finance Will Soon Be Big Data Finance

Trends: All Finance Will Soon Be Big Data Finance

Just 10 years ago, finance was a small-data discipline. The small-data approach was partly due to the actual lack of data. To most investors, exchanges offered only four prices per stock per day: Open, High, Low and Close, and all of those were reported the following day (on the T+1 basis). Even the largest market makers did not store intraday data beyond what was mandated by regulators. Commodity trading floors, for instance, had only 21 days of history on hand until approximately five years ago. Finance Ph.D. programs almost exclusively taught analysis of closing prices, mentioning intraday variations only in passing.

Today, real-time streaming data is widely available. The proliferation of data is significantly changing business models in financial firms, whether in market making or long-term portfolio management. Even long-only portfolio managers nowadays add screens of data-driven signals to their portfolio selection models in order to abstract volatility and noise and realize pure returns for their investors. On the other hand, portfolio managers ignoring or under-studying the multitude of available data are adding a considerable risk to their investment portfolios.

Just acquiring the data, however, does not guarantee success. What does one do with the information? The answer often lies in years of research developed for other purposes in areas of mathematics and computer science. While many techniques for doing so have been developed in other area of science, the trickle-down into financial applications has been rather slow.

Processing large sets of information in reasonable time is another non-trivial task. The data is voluminous and cumbersome to work with. Design and optimization of financial data processing techniques is an area of active academic and practitioner study, and much evolution is happening in the space.

Some of the progress will be showcased in this year’s upcoming Big Data Finance conference, a third annual conference dedicated to the newest research on the aggregation, processing and utilization of financial data to take place on March 6, 2015, at NYU Courant.

Prof. Marco Avellaneda of NYU Courant, for example, will discuss his groundbreaking research on utilizing digital image processing techniques to significantly improve options pricing. Prof. Alfred Galichon of MIT will discuss a different technique for fast interpretation of financial information, relevant to all modern portfolio managers and execution traders alike.

A separate set of Big Data problems in finance are related to data governance. Not all Big Data models need to be developed in-house and the number of vendors growing Big Data finance applications has been increasing steadily over the last few years. With external Big Data feeds come data strategies, risks for utilizing data, and policies for mitigating the said risks. At the Big Data finance 2015, Ivana Ruffini of the Federal Reserve Bank of Chicago will discuss the key strategies the Bank has deployed to keep track of various data initiatives.

Finance is no longer a small data discipline. The ability to process silos of information on the fly separate winners and losers in today’s financial markets. Being aware of the latest Big Data finance tools and techniques is a necessity for every prudent Financial Services professional.

Irene Aldridge is Managing Director, Able Alpha Trading, LTD., and AbleMarkets.com, and author of High-Frequency Trading: A Practical Guide to Algorithmic Strategies and Trading Systems (2nd edition, Wiley, 2013).

142 Comments

  1. Attractive section of content. I just stumbled upon your web site and in accession capital to assert that I get in fact enjoyed account your blog posts. Any way I will be subscribing to your feeds and even I achievement you access consistently quickly.

  2. Have you ever considered creating an e-book or guest authoring on other blogs? I have a blog based on the same subjects you discuss and would love to have you share some stories/information. I know my visitors would enjoy your work. If you’re even remotely interested, feel free to send me an email.

  3. Do you mind if I quote a few of your articles as long as I provide credit and sources back to your website? My website is in the very same area of interest as yours and my users would truly benefit from a lot of the information you present here. Please let me know if this ok with you. Thanks!

  4. Hey there! I’ve been following your weblog for some time now and finally got the bravery to go ahead and give you a shout out from Atascocita Tx! Just wanted to tell you keep up the great job!

  5. You have mentioned very interesting points! ps decent site.

  6. Way cool! Some very valid points! I appreciate you writing this article and the rest of the website is also really good.

  7. The author’s name is Thad Shattuck. It’s not a common thing but what Favor doing is archery but i can’t for being my profession really. Puerto Rico may be the my house is and I have everything which i need the following. Data processing is how I make a profit. I’m not good at webdesign but you might in order to check my website: #link#

  8. you’re truly a good webmaster. The website loading pace is incredible. It kind of feels that you are doing any distinctive trick. Moreover, The contents are masterwork. you’ve performed a excellent task on this topic!

  9. Yesterday, while I was at work, my sister stole my apple ipad and tested to see if it can survive a forty foot drop, just so she can be a youtube sensation. My apple ipad is now destroyed and she has 83 views. I know this is completely off topic but I had to share it with someone!

  10. Hey! I realize this is somewhat off-topic but I had to ask. Does operating a well-established blog like yours take a lot of work? I’m completely new to running a blog however I do write in my diary daily. I’d like to start a blog so I can easily share my experience and thoughts online. Please let me know if you have any recommendations or tips for brand new aspiring bloggers. Appreciate it!

  11. Whats up this is kind of of off topic but I was wanting to know if blogs use WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding knowledge so I wanted to get guidance from someone with experience. Any help would be greatly appreciated!

  12. Thank you for another wonderful post. Where else could anyone get that kind of information in such a perfect way of writing? I’ve a presentation next week, and I’m on the look for such info.

  13. Hey! I know this is kinda off topic however , I’d figured I’d ask. Would you be interested in trading links or maybe guest authoring a blog post or vice-versa? My site addresses a lot of the same topics as yours and I think we could greatly benefit from each other. If you happen to be interested feel free to send me an e-mail. I look forward to hearing from you! Awesome blog by the way!

  14. This design is steller! You obviously know how to keep a reader entertained. Between your wit and your videos, I was almost moved to start my own blog (well, almost…HaHa!) Wonderful job. I really loved what you had to say, and more than that, how you presented it. Too cool!

  15. Hi there, i read your blog occasionally and i own a similar one and i was just curious if you get a lot of spam remarks? If so how do you reduce it, any plugin or anything you can recommend? I get so much lately it’s driving me mad so any help is very much appreciated.

  16. Very good website you have here but I was curious if you knew of any user discussion forums that cover the same topics discussed in this article? I’d really like to be a part of group where I can get advice from other experienced individuals that share the same interest. If you have any suggestions, please let me know. Many thanks!

  17. Greetings from Ohio! I’m bored to tears at work so I decided to browse your website on my iphone during lunch break. I enjoy the knowledge you present here and can’t wait to take a look when I get home. I’m amazed at how fast your blog loaded on my phone .. I’m not even using WIFI, just 3G .. Anyhow, awesome blog!

  18. Thanks for the marvelous posting! I certainly enjoyed reading it, you might be a great author.I will make sure to bookmark your blog and will often come back later on. I want to encourage you to ultimately continue your great job, have a nice afternoon!

  19. I was wondering if you ever thought of changing the layout of your site? Its very well written; I love what youve got to say. But maybe you could a little more in the way of content so people could connect with it better. Youve got an awful lot of text for only having one or 2 pictures. Maybe you could space it out better?

  20. I’m not that much of a internet reader to be honest but your blogs really nice, keep it up! I’ll go ahead and bookmark your website to come back later. Cheers

  21. Heya great blog! Does running a blog such as this take a great deal of work? I’ve absolutely no knowledge of computer programming however I was hoping to start my own blog in the near future. Anyways, should you have any suggestions or techniques for new blog owners please share. I understand this is off topic but I just needed to ask. Kudos!

  22. Hello! Quick question that’s completely off topic. Do you know how to make your site mobile friendly? My weblog looks weird when viewing from my iphone 4. I’m trying to find a theme or plugin that might be able to fix this problem. If you have any recommendations, please share. Appreciate it!

  23. Amazing blog! Is your theme custom made or did you download it from somewhere? A theme like yours with a few simple tweeks would really make my blog jump out. Please let me know where you got your theme. Appreciate it

  24. Please let me know if you’re looking for a article writer for your blog. You have some really good articles and I think I would be a good asset. If you ever want to take some of the load off, I’d absolutely love to write some material for your blog in exchange for a link back to mine. Please blast me an e-mail if interested. Thank you!

  25. Wonderful website you have here but I was wondering if you knew of any forums that cover the same topics discussed in this article? I’d really like to be a part of group where I can get responses from other knowledgeable individuals that share the same interest. If you have any suggestions, please let me know. Cheers!

  26. I love your blog.. very nice colors & theme. Did you create this website yourself or did you hire someone to do it for you? Plz answer back as I’m looking to design my own blog and would like to know where u got this from. thank you

  27. This is the right blog for anyone who wants to find out about this topic. You realize so much its almost hard to argue with you (not that I actually would want?HaHa). You definitely put a new spin on a topic thats been written about for years. Great stuff, just great!

  28. Currently it appears like Movable Type is the top blogging platform out there right now. (from what I’ve read) Is that what you’re using on your blog?|

  29. Nice post. I learn something more challenging on different blogs everyday. It will always be stimulating to read content from other writers and practice a little something from their store. I?d prefer to use some with the content on my blog whether you don?t mind. Natually I?ll give you a link on your web blog. Thanks for sharing.

  30. Miss Friel is what’s written for my child birth certificate and she totally digs that name or company name. My husband and I chose to reside California. His wife doesn’t like it the way he does but what he really loves doing is researching fashion but he can’t allow it to his employment. Supervising has been my profession for a little while but I plan on changing things. If you want to find out more check out his website: #link#

  31. Hello. Allow me to introduce writer. Her name is Mahalia Buchholtz. I am currently a procurement officer and the salary already been really attractive. Solving puzzles is what she loves doing. Vermont has always been my living place however i will to be able to move in a year or associated with. If you want to find out more check out my website: #link#

  32. An impressive share, I just given this onto a colleague who was doing a little analysis on this. And he in fact bought me breakfast because I found it for him.. smile. So let me reword that: Thnx for the treat! But yeah Thnkx for spending the time to discuss this, I feel strongly about it and love reading more on this topic. If possible, as you become expertise, would you mind updating your blog with more details? It is highly helpful for me. Big thumb up for this blog post!

  33. I every time used to read piece of writing in news papers but now as I am a user of web thus from now I am using net for articles or reviews, thanks to web.|

  34. After study a few of the blog posts on your website now, and I truly like your way of blogging. I bookmarked it to my bookmark website list and will be checking back soon. Pls check out my web site as well and let me know what you think.

  35. Asking questions are in fact nice thing if you are not understanding something totally, however this paragraph presents good understanding even.|

  36. Very nice post. I just stumbled upon your blog and wished to say that I have truly loved surfing around your weblog posts. After all I will be subscribing to your feed and I am hoping you write once more soon!|

  37. Link exchange is nothing else but it is only placing the other person’s weblog link on your page at suitable place and other person will also do similar for you.|

  38. This is my first time pay a quick visit at here and i am genuinely impressed to read all at single place.|

  39. Thank you a bunch for sharing this with all people you actually realize what you are speaking about! Bookmarked. Kindly also visit my site =). We can have a link exchange agreement among us|

  40. After study a few of the blog posts on your website now, and I truly like your way of blogging. I bookmarked it to my bookmark website list and will be checking back soon. Pls check out my web site as well and let me know what you think.

  41. I get pleasure from, lead to I found just what I used to be taking a look for. You have ended my 4 day lengthy hunt! God Bless you man. Have a nice day. Bye|

  42. We’re a bunch of volunteers and starting a brand new scheme in our community. Your website provided us with valuable info to work on. You have done a formidable job and our entire group can be thankful to you.|

  43. After study a few of the blog posts on your website now, and I truly like your way of blogging. I bookmarked it to my bookmark website list and will be checking back soon. Pls check out my web site as well and let me know what you think.

  44. Its such as you read my thoughts! You appear to know a lot approximately this, like you wrote the guide in it or something. I believe that you just could do with a few to power the message house a little bit, however other than that, this is fantastic blog. An excellent read. I will certainly be back.|

  45. Hello. Permit me to introduce writer. Her name is Mahalia Buchholtz. Solving puzzles is what she loves doing. I am currently a procurement officer and the salary been recently really gratifying. Vermont has always been my living place however i will ought to move in a year or 1. If you want to find out more check out my website: #link#

  46. Why viewers still make use of to read news papers when in this technological globe all is presented on web?|

  47. There are certainly a lot of details like that to take into consideration. That is a great point to bring up. I offer the thoughts above as general inspiration but clearly there are questions like the one you bring up where the most important thing will be working in honest good faith. I don?t know if best practices have emerged around things like that, but I am sure that your job is clearly identified as a fair game. Both boys and girls feel the impact of just a moment?s pleasure, for the rest of their lives.

  48. I just could not go away your website prior to suggesting that I really loved the usual information an individual supply for your guests? Is going to be again frequently in order to check up on new posts|

  49. When I originally commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get four emails with the same comment. Is there any way you can remove me from that service? Thank you!|

  50. There are certainly a lot of details like that to take into consideration. That is a great point to bring up. I offer the thoughts above as general inspiration but clearly there are questions like the one you bring up where the most important thing will be working in honest good faith. I don?t know if best practices have emerged around things like that, but I am sure that your job is clearly identified as a fair game. Both boys and girls feel the impact of just a moment?s pleasure, for the rest of their lives.

  51. Have you ever considered creating an ebook or guest authoring on other websites? I have a blog based on the same information you discuss and would really like to have you share some stories/information. I know my audience would appreciate your work. If you’re even remotely interested, feel free to shoot me an e-mail.|

  52. Enjoyed studying this, very good stuff, thankyou . “We swallow greedily any lie that flatters us, but we sip little by little at a truth we find bitter.” by Denis Diderot.

  53. When some one searches for his required thing, so he/she desires to be available that in detail, so that thing is maintained over here.|

  54. You really make it appear so easy with your presentation however I find this topic to be actually something which I think I’d never understand. It sort of feels too complex and very broad for me. I’m taking a look forward to your subsequent put up, I will try to get the hold of it!|

  55. Nice meet up with you, I am Thomas Shattuck. His wife and him chose to reside Vermont and the will never move. Credit authorising is how she makes money but she intentions of changing doing it. Climbing exactly what I do every seven days. I am running and maintaining a blog here: #link#

  56. Thanks for your marvelous posting! I actually enjoyed reading it, you might be a great author.I will be sure to bookmark your blog and will often come back at some point. I want to encourage continue your great job, have a nice holiday weekend!

  57. I’m really enjoying the theme/design of your web site. Do you ever run into any internet browser compatibility problems? A couple of my blog visitors have complained about my blog not working correctly in Explorer but looks great in Firefox. Do you have any tips to help fix this issue?

  58. Hi! Someone in my Facebook group shared this site with us so I came to take a look. I’m definitely enjoying the information. I’m book-marking and will be tweeting this to my followers! Fantastic blog and terrific design and style.

  59. Yesterday, while I was at work, my sister stole my iPad and tested to see if it can survive a 30 foot drop, just so she can be a youtube sensation. My iPad is now broken and she has 83 views. I know this is entirely off topic but I had to share it with someone!

  60. Wow! This blog looks exactly like my old one! It’s on a completely different topic but it has pretty much the same page layout and design. Excellent choice of colors!

  61. It’s an awesome article in favor of all the online people; they will take advantage from it I am sure.|

  62. Fascinating blog! Is your theme custom made or did you download it from somewhere? A design like yours with a few simple tweeks would really make my blog jump out. Please let me know where you got your theme. Thanks a lot

  63. Hello, I think your site might be having browser compatibility issues. When I look at your blog site in Chrome, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, great blog!

  64. Wow that was unusual. I just wrote an extremely long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again. Anyhow, just wanted to say excellent blog!

  65. Hi just wanted to give you a quick heads up and let you know a few of the pictures aren’t loading correctly. I’m not sure why but I think its a linking issue. I’ve tried it in two different internet browsers and both show the same results.

  66. Hi there. My name is Rayna. It’s not merely a common thing but what she likes doing is coin collecting but she can’t turn out to be her vocation. Office supervising is his normal work for a while. California is where my home is need not have exactly I need here. Check out the latest news on this website: #link#

  67. My spouse and I stumbled over here coming from a different website and thought I may as well check things out. I like what I see so now i am following you. Look forward to looking into your web page repeatedly.|

  68. Hey! I know this is kind of off topic but I was wondering if you knew where I could locate a captcha plugin for my comment form? I’m using the same blog platform as yours and I’m having trouble finding one? Thanks a lot!

  69. Awesome website you have here but I was curious about if you knew of any message boards that cover the same topics discussed in this article? I’d really like to be a part of online community where I can get feed-back from other experienced individuals that share the same interest. If you have any recommendations, please let me know. Thanks a lot!

  70. Today, I went to the beach with my children. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She placed the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is entirely off topic but I had to tell someone!

  71. We absolutely love your blog and find the majority of your post’s to be exactly I’m looking for. Do you offer guest writers to write content for yourself? I wouldn’t mind writing a post or elaborating on most of the subjects you write with regards to here. Again, awesome blog!

  72. What’s up, just wanted to say, I liked this blog post. It was practical. Keep on posting!|

  73. Fantastic items from you, man. I’ve take note your stuff previous to and you’re just extremely fantastic. I really like what you’ve got right here, really like what you are saying and the best way wherein you are saying it. You’re making it entertaining and you continue to care for to stay it wise. I cant wait to read far more from you. This is actually a great site.|

  74. Valuable information. Fortunate me I found your website by accident, and I’m stunned why this accident didn’t came about earlier! I bookmarked it.|

  75. Miss Friel is the name I love to be called with flawed is not the name on my birth records. Her house is presently in Puerto Rico. Office supervising is generate an income make money but the promotion never comes. To read comics is something that I’ve finished years. If you want to find uot more check out his website: #link#

  76. hey there and thank you for your info – I have certainly picked up anything new from right here. I did however expertise a few technical points using this website, as I experienced to reload the website a lot of times previous to I could get it to load correctly. I had been wondering if your web host is OK? Not that I am complaining, but sluggish loading instances times will sometimes affect your placement in google and can damage your high quality score if advertising and marketing with Adwords. Anyway I am adding this RSS to my email and could look out for a lot more of your respective exciting content. Ensure that you update this again very soon.|

  77. I’m curious to find out what blog platform you’re utilizing? I’m having some small security issues with my latest website and I would like to find something more secure. Do you have any solutions?|

  78. This is the right blog for anyone who wants to find out about this topic. You realize so much its almost hard to argue with you (not that I actually would want?HaHa). You definitely put a new spin on a topic thats been written about for years. Great stuff, just great!

  79. I’ve read a few excellent stuff here. Definitely price bookmarking for revisiting. I wonder how a lot effort you set to create this kind of excellent informative site.|

  80. Way cool! Some extremely valid points! I appreciate you writing this post and the rest of the website is really good.|

  81. An impressive share, I just given this onto a colleague who was doing a little analysis on this. And he in fact bought me breakfast because I found it for him.. smile. So let me reword that: Thnx for the treat! But yeah Thnkx for spending the time to discuss this, I feel strongly about it and love reading more on this topic. If possible, as you become expertise, would you mind updating your blog with more details? It is highly helpful for me. Big thumb up for this blog post!

  82. Hi there, just was alert to your blog through Google, and located that it is really informative. I’m gonna be careful for brussels. I’ll appreciate in the event you proceed this in future. Numerous other folks shall be benefited from your writing. Cheers!|

  83. I like the helpful info you supply on your articles. I’ll bookmark your weblog and check once more right here regularly. I’m somewhat certain I will be told many new stuff proper right here! Best of luck for the following!

  84. I don’t even know how I ended up right here, but I believed this post used to be great. I don’t recognise who you’re but definitely you are going to a well-known blogger if you happen to are not already 😉 Cheers!

  85. Hello there, simply become aware of your weblog through Google, and located that it’s really informative. I’m going to be careful for brussels. I’ll appreciate should you continue this in future. Many other folks can be benefited from your writing. Cheers!|

  86. My brother recommended I might like this website. He was once entirely right. This submit actually made my day. You cann’t believe simply how a lot time I had spent for this info! Thank you!

  87. I simply want to say I am just beginner to blogging and site-building and definitely loved you’re website. More than likely I’m going to bookmark your blog . You absolutely have amazing posts. Thank you for sharing your website.

  88. Nice post. I learn something more challenging on different blogs everyday. It will always be stimulating to read content from other writers and practice a little something from their store. I?d prefer to use some with the content on my blog whether you don?t mind. Natually I?ll give you a link on your web blog. Thanks for sharing.

  89. This is the right blog for anyone who wants to find out about this topic. You realize so much its almost hard to argue with you (not that I actually would want?HaHa). You definitely put a new spin on a topic thats been written about for years. Great stuff, just great!

Leave a Reply

Your email address will not be published.