Skip to main content

#Algorithmic trading? #Use Cloud Computing !

Algorithmic Trading or the shorter term Algo is today's F1 engine for trading in financial markets.Wiki:  http://en.wikipedia.org/wiki/Algorithmic_trading 

Alog Trading is like a high speed expressway.
Photo Courtesy : Amitav Thamba
Cloud Computing will make Algos faster  reliable and cost effective for trading in stocks and commodities globally. Algos which were the privilege of large fund management houses will now be available to any investor as a SAAS solution in the cloud. Here is a link to one such solution from EtnaSoft http://www.etnasoft.com/solutions/etna-robot.

Algos will make the day trader redundant and we will see more doctoral candidates stringing the Algo logic and the trade cycles being executed in shorter cycle time.
The regulator will be forced to acknowledge and accept Algo trading and exchanges will need to move their trading applications to the Cloud to support the Algo engines.
NYSE has already done significant work in leveraging the cloud for trading, other exchanges will need to finalize their cloud strategy for their trading engine.
Be prepared for greater upheavals in the global financial markets in the day ahead and tools for Risk Management will also move to the cloud to keep pace at this unprecedented speed and computing power driven by algos in the cloud.

Today a 24x7 global trading platform is viable and the cloud computing infrastructure which is agile, economical and available 24x7 the world is ready for non-stop trading with Algo engines. But Is the Regulator Ready ?

Comments

  1. very nice you have explain about cloud computing. Thanks for sharing this with us. This is a really good piece of information and the most simplified one.
    Online Financial Software

    ReplyDelete

Post a Comment

Popular posts from this blog

SMAC and the Transformation of Customer Service & Dialogue

"SMAC" is the a acronym for Social, mobile, analytics & cloud the four pillars of the fifth wave of technology as defined by  Cognizant Technology the  Teaneck, New Jersey headquartered ITES company (NASDAQ Symbol : CTSH). SMAC will change the customer dialogue by leveraging on the collective strength of the Social Media Network, Mobile devices, Analytics driven by Big Data solutions and Cloud Computing as the underlying backbone of affordable and reliable engine for computation.  Let us look at each of these components and their impact on our lives today: 1. Social Media - The Social Media has seen breakneck growth and significant valuation with the winners, we have the four undisputed leaders in this segment Facebook, Twitter, Pinterest  & LinkedIn with competition from Yahoo, Google and Microsoft and another hundred more social media sites of different hues and aspirations.   2. Mobility - The way we handle and process information an...

Top 10 Changes in the Workplace - Impact of COVID-19

A lot has been said about what’s happening with the impact of Covid, on the workplace. Many of these are hard to imagine and some will require serious consideration. Nevertheless, my 20 years plus background in IT, Operations and Consulting across BCP, Security, Projects and Leadership makes me believe the following are what we can be looking forward to (at varying levels) over the next couple of years. Please leave a comment and I would love to hear your thoughts and comments too! 1.        Disinfection Chambers -  You would have to walk into the office through disinfection chambers, entry into the chamber would be post facial and iris recognition for 2 factor biometric contactless authentication.  You could then be tested   for Covid by a nurse through the use of a rapid test kit (Emirates Airline has already deployed the same for airline passengers), there would be a ten minute wait time for the results before you are let into t...

25 Years of Teletext and the India Teletext Project

Photo Credit - Theo Priestly (https://www.linkedin.com/in/theopriestley/) A post in LinkedIn on 25 years of teletext reminded me of the implementation of the teletext project in India in the early 1990's .  My first introduction to teletext was in the United Kingdom in 1990 where I learnt the finer points of horse racing in the teletext feed, it was interesting information and available with a click on the TV remote. I returned to India in 1991 and was hired as a member of the OTCEI  (Over the Counter Exchange of India) team to build India's first national fully automated stock exchange  created on the lines of NASDAQ USA.  We successfully  launched the exchange but needed a solution for  price dissemination to smaller cities. The Satellite Antenna for teletext in Mumbai (LtoR) Sudesh Puthran, author, Late R. Ravimohan, Sandeep Bagalkar & Karthik Shah   There was only one vendor for equity price dissemination those days, it ...