The Transformational Influence of Big
_____________________________________________________________________________
-‐ Confiden*al -‐
Disclaimer
_____________________________________________________________________________
-‐ Confiden*al -‐
Speakers
3
Paul Cassell
Chief Information Officer
,
Paul Cassell is the Chief Information Officer at Pico. In this role, Pauloversees all aspects of Pico’s technology function, including network and systems engineering, data center operations, disaster recovery and business continuity planning and technology policies and procedures. He also leads the firm’s growing consulting division, Pico Consulting, a division of SpryWare, LLC. Paul has over 25 years of experience in financial services and technology. Most recently, he served as founder and President of PC IT Consulting Inc. There he helped top-tier clients transform their IT operations. Paul also served as U.S. CIO for NYSE Euronext and the New York Stock Exchange, where he oversaw a $300 million budget for an S&P 500 company with more than $3.5 billion in annual revenues and a workforce in excess of 1,500 that spanned three
continents and 10 countries.
Daniel Bartucci
Director, Corporate Development, Daniel Bartucci leads Corporate Development at Pico, and focuses on Pico’s corporate strategy, consulting, partnerships, and key accounts. Dan has over 15 years of experience in financial services and technology. Before joining Pico, Dan was the Director of Business Development for RFA. In this role Dan lead sales, relationship management, and strategic relationships. Prior to RFA, Dan was a Managing Director and the Head of Institutional Sales in North America for NYSE Technologies. During this time, Dan was involved in several key product launches, including the NYSE Capital Markets Community Cloud and the launch of the Toronto liquidity center. Dan also spent over 10 years at ITG across various roles in the sales, trading, and technology organizations
_____________________________________________________________________________
-‐ Confiden*al -‐
About Pico
4
Pico’s client base encompasses a full spectrum of market par*cipants; hedge funds, asset managers, trading firms, family offices, banks, broker dealers, hedge funds, technology vendors, and liquidity venues.
Since our founding in 2009 we have grown to over 90 employees, 3 offices, 14 data centers and solu*ons across asset classes. It is with the help of these employees and leading automa*on tools that we are able to deliver outstanding service quality. We con*nuously train our staff to fulfill these high expecta*ons to customer sa*sfac*on.
*Pico Global Ltd is registered as a Private Limited Company in England and Wales.
Pico is a financial technology services firm
established under the business principles of providing
dis*nguished products and services, delivering innova*ve and pragma*c technology solu*ons plus offering
significant market structure and regulatory exper*se.
§
Technology Hos*ng & Managed Infrastructure
§
Market Data Solu*ons
§
Risk Management
§
Regulatory Repor*ng
§
Outsourced QA Tes*ng
§
Managed FIX Connec*vity
§
Technology & So^ware Consul*ng
§
Equipment VAR
5
_____________________________________________________________________________
Social Networking
-‐ Confiden*al -‐
Audience Par*cipa*on
1.
What is the first source you use
for breaking news events?
a.
Radio
b.
Television
c.
Social Media/Internet
2.
How many devices do you have
receiving data or news updates?
How many are carrying now?
3.
How many of you have at least
one social media profile?
6
_____________________________________________________________________________
Social Networking
-‐ Confiden*al -‐
Bri*sh Airways B777 le^
engine explodes on takeoff
in Las Vegas
Twifer floods the story first,
ahead of major news
channels
Survivors take photos and
video during evacua*on and
post to social media sites
such as Twifer
What can you do if you are
a trader long Boeing or the
engine manufacturer, etc?
-‐ Confiden*al -‐
7
Social networking integra*on is the new normal.
$136 Billion in Equity
Market Value
_____________________________________________________________________________
-‐ Confiden*al -‐
60 Seconds
8
_____________________________________________________________________________
-‐ Confiden*al -‐
60 Seconds
9
1 MicroSecond :
1 Millionth of a Second 0.000001 Seconds
Strobe Light Flash
1,000,000 Flashes per Second
1 MilliSecond:
1 Thousandth of a Second 0.001 Seconds
250 MilliSeconds = Human Eye Blink
4 Blinks per Second
A single trading algorithm can carry out anywhere
between 3,000 – 5,000 transacSons in the Sme it takes to blink.
Average Share Hold Time
1960
FOUR DAYS2000
EIGHT MONTHS2008
TWO MONTHS2014
TWENTY SECONDS * * SOURCE : TradeCiety.com_____________________________________________________________________________
-‐ Confiden*al -‐
TradiSonal Market Data
10
Snapshot :
October 29,2015*
Highest one second peak of market
data per minute
High
9:30am – 5.59 million messages
Low
12:58pm – 271 thousand messages
October 28 : Peak – 7.09 million messages
High/Low DifferenSal:
2.94 million messages
Seconds per trading day:
23,400 — 68,796,000,000 billion messages
_____________________________________________________________________________
-‐ Confiden*al -‐Challenges
11The “Known”
Challenges in
Capital Markets
•
Structured market data con*nues to
grow in volume.
•
Message rates rapidly accelerate in *mes
of high market vola*lity.
•
Real *me and historical data enablement
costs con*nue to increase.
•
Access policies are undergoing near
constant change.
•
Fundamental data includes a deeper
range of consumer metrics.
•
Low latency technologies including both
hardware and so^ware can make a level
playing field with the appropriate
investment or commitment.
•
Data is easy to store, harder to
efficiently access.
_____________________________________________________________________________
-‐ Confiden*al -‐Challenges
12•
More real-‐*me trading decisions made
from unstructured data sources.
•
Defining use cases for retained data from
historical review, analy*cs, to sales and
customer informa*on.
•
Trading con*nues to shi^ from simple
equi*es to complex instruments.
•
How do you make unstructured data
uniform and searchable?
•
Data privacy regula*ons and approach to
owning your own data and knowing its
whereabouts at all *mes.
•
Appropriately segrega*ng data by
importance and access needs.
•
Security. Security. Security.
The “
Emerging
”
Challenges in
Capital Markets
_____________________________________________________________________________
-‐ Confiden*al -‐Sourcing
13•
Selec*ng a trusted partner with
relevant knowledge
•
Data ownership and protec*on issues
•
Reduced / No capital expenditure
•
Scalable cost model for data inges*on
and future growth
•
Resource and talent constraint
•
Limited collabora*on
•
Control of data sources and use
•
Large capital expense and frequent
builds to add data feeds and sets
Outsourcing
Building a House
_____________________________________________________________________________
-‐ Confiden*al -‐
Strategy
14
Building A Data Ecosystem
Ac*ve Trading
Automa*on
1010101001001
10001000100101101001010100
101001010101010101100
Structured
Unstructured
Data Sources
Sales and
client metrics
Historical review
and tes*ng
Security and
Data Loss
Preven*on
Quality and
Tes*ng
LEGAL NOTICE
The content provided in this presenta*on contains confiden*al and proprietary informa*on of Pico Quan*ta*ve Trading LLC and its affiliates. It is intended for informa*onal purposes only. Although we believe this content to be correct, we do not warrant the accuracy or completeness of any informa*on.
The content provided in this presenta*on is not intended to provide specific financial, tax, legal or accoun*ng advice and should not be relied upon in that regard.
This presenta*on does not cons*tute an offer to sell or a solicita*on of an offer to buy any securi*es or interests, nor may it be interpreted to provide investment advice.
Performance data provided represents past performance and is not necessarily indica*ve of future performance. Future results may vary and in no event are guaranteed.
-‐ Confiden*al -‐
