The shift to fully electronic message-based banking is, for all practical purposes, complete. Sell side firms must continue to improve performance in the increasingly competitive market and under intense, and growing, regulatory pressure. Investment banks, brokers, and market makers must focus on order execution, market making, and transaction cost analysis (TCA). In order to do this successfully, they have to process high volumes of fast moving market and trading data, perform complex analytics, and take timely – but informed – action.
Panopticon enables sell side firms to optimize utilization of their data resources, including transaction data with nanosecond granularity, in order to derive greater profitability out of the trading process. Our advanced analytics and stream processing capabilities enable quants and traders to fully comprehend the performance of orders, executions, and order books using multiple liquidity providers and execution venues. They can drill down to see individual transactions and play back transactions in real time, slower than real tie, or faster than real time, to gain a thorough understanding of causes and effects in complex collections of trades.
Analyze Trading Activity for Any Asset Class with Nanosecond Accuracy
The fundamental challenges around trading analytics are the same for fixed income, rates, FX, credit, equities, commodities, although the approach individual people may take vary enormously. This highlights the need to deploy analytics platforms that quants and traders can customize themselves, without having to spend time writing code, or depending on an IT team to build new solutions. Impactful market events and opportunities arise too quickly to wait for custom development projects. The business users themselves need tools that place the full power of all the data and analytical resources available in the firm at their fingertips.
Regulatory bodies, including the FCA, FINRA and SEC, expect to see truly effective monitoring and transparency across foreign exchange (FX), fixed income, equities, and commodity markets. Panopticon supports the levels of transparency required today, including by MiFID II. It enables compliance officers to spot problems immediately – during the trading day – so they can take action before a small problem becomes a major compliance breach. The mounting cost of compliance continues to squeeze profits for sell-side institutions; however, effective use of flexible data analytics tools is key to developing new competitive advantages as well as complying with the constantly evolving regulatory environment.