Big Data, Big Possibilities
Nobel Prize economist Robert Shiller said, “Some of the best theorizing comes after collecting data because then you become aware of another reality.” That is a pretty aspirational statement in our space, but it speaks to the omnipotence and limitless possibilities of data. At TT, we believe that data has the ability to inform, manage, protect, and ultimately drive decisions that could have profound impacts on our clients’ and users’ businesses. In this blog post, we introduce how you can unleash the power of data using some of the data elements that are available via the TT ecosystem.
TT provides a range of data import, normalization, storage, access and analytics capabilities that can solve your enterprise-wide compliance and risk management challenges. With TT, you can import all of your company’s trade activity, no matter the source, use our tools to view and analyze in real-time or after the fact, and access that data indefinitely for compliance purposes.
Here are a few of the components of TT Data Services.
Data Ingest
With Data Ingest, you can import all order activity across your firm to TT using FIX Inbound Drop Copy. The ingested data can come from exchange drop copy feeds provided by TT or from your own drop copy feeds that conform to our specifications. No matter what or how many platforms you use to execute across your firm, all execution reports are normalized and available on TT. Some of the benefits of our Data Ingest solution include:
- Flexibility: Import all order activity across your entire enterprise–directly from an exchange drop copy or from your own feed that conforms to our FIX Inbound Drop Copy spec.
- Normalization: Execution reports from all drop feeds are ingested via FIX Inbound Drop Copy and normalized on TT.
- Storage: All data that is ingested and normalized is stored along with transactional data generated within TT.
Data Warehouse
All data that is ingested via FIX Inbound Drop Copy is normalized and stored along with the transactional data generated within TT. Once your data is stored, you can access it for a variety of compliance and business intelligence needs. The benefits of Data Warehouse include:
- Centralization: Store all of your firm’s trading records in a central and secure location where it is accessible for your various needs.
- Flexibility: Choose between affordable and secure cloud storage, and even more affordable long-term archiving solutions.
- Compliance: With all of your firm’s trade data stored in one place, you can easily comply with exchange and regulatory agency compliance requirements.
Surveillance
Use our TT® Score surveillance solution and its machine learning capabilities to identify trading behavior that may prompt regulatory inquiries. TT Score compares your firm’s order activity, including data that has been ingested to TT, to patterns of high-risk activity from actual regulatory cases. It then scores all activity based on its similarity to known problematic behaviors, such as spoofing and marking the close. Key benefits of TT Score include:
- Identify Risk: Detect potential high-risk activity using advanced pattern recognition and flag hidden threats well before disaster strikes.
- Avoid Violations:Discover manipulative or disruptive activity before violations happen, preventing fines and enforcement investigations.
- Optimize Operations: Streamline compliance and risk reviews by identifying, prioritizing and addressing higher-risk activity sooner and more efficiently.
- Detect Anomalies: Find outlier events by understanding historical trends, environmental context and correlation within firm activity.
Risk Management
Leverage transactional data across all of your trading platforms for true enterprise-level risk management. By ingesting all order activity from all execution platforms, you effectively have a consolidated order book and can use TT to get a complete picture of all of your firm’s orders, fills and positions. All external activity is then accounted for and included in all of TT’s sophisticated risk management capabilities, including:
- Pre-trade Risk Checks: Set a multitude of order size, position and credit limits on accounts and users to manage risk across the firm.
- Order Cross Prevention: Prevent order crossing and self matching to avoid regulatory violations and fines.
- Price Controls: Configure price reasonability and other price controls to prevent traders and algos from submitting orders at undesirable prices potentially due to volatile and illiquid market conditions.
- Portfolio Analysis: Leverage SPAN margin to more accurately assess account risk for an entire portfolio and use it as a pre-trade risk check.
- APIs: Build your own risk management applications and integrate your own administrative systems using a variety of APIs.
Today, we are helping clients manage their data for a variety of reasons, including compliance, risk management and analysis. To see how we can help you with your specific needs, please contact us.