« PRMIA on Basel III, Volcker and the Fed | Main | Numerix and Xenomorph partner in risk management »

03 December 2012

Big Data - Integration still a key (external) issue

Good breakfast event from SAP and A-Team last Thursday morning. SAP have been getting (and I guess paying for) a lot of good air-time for their SAP Hana in-memory database technology of late. Domenic Iannaccone of SAP started the briefing with an introduction to big data in finance and how their SAP/Sybase offerings knitted together. He started his presentation with a few quotes, one being "Intellectual property is the oil of the 21st century" by Mark Getty (he of Getty images, but also of the Getty oil family) and "Data is the new oil" by both Clive Humby and Gerd Leonhard (not sure why two people quoted saying the same thing but anyway).

For those of you with some familiarity with the Sybase IQ architecture of a year or two back, then in this architecture SAP Hana seems to have replaced the in-memory ASE database that worked in tandem with Sybase IQ for historical storage (I am yet to confirm this, but hope to find out more in the new year). When challenged on how Hana differs from other in-memory database products, Domenic seemed keen to emphasise its analytical capabilities and not just the database aspects. I guess it was the big data angle of bring the "data closer to the calculations" was his main differentiator on this, but with more time I think a little bit more explanation would have been good.

Pete Harris of the A-Team walked us through some of the key findings of what I think is the best survey I have read so far on the usage of big data in financial markets (free sign-up needed I think, but you can get a copy of the report here). Some key findings from a survey of staff at ten major financial institutions included:

  • Searching for meaning in instructured data was a leading use-case thought of when thinking of big data (Twitter trading etc)
  • Risk management was seen as a key beneficiary of what the technologies can offer
  • Aggregation of data for risk was seen as a key application area concerning structured data.
  • Both news feed but also (surprisingly?) text documents were key unstructured data sources being processed using big data.
  • In trading news sentiment and time series analysis were key areas for big data.
  • Creation of a system wide trade database for surveillance and compliance was seen as a key area for enhancement by big data.
  • Data security remains a big concern with technologists over the use of big data.

There were a few audience questions - Pete clarified that there was a more varied application of big data amongst sell-side firms, and that on the buy-side it was being applied more KYC and related areas. One of the audience made that point that he thought a real challenge beyond the insight gained from big data analysis was how to translate it into value from an operational point of view. There seemed to be a fair amount of recognition that regulators and auditors are wanting a full audit trail of what has gone on across the whole firm, so audit was seen as a key area for big data. Another audience member suggested that the lack of a rigid data model in some big data technologies enabled greater flexibility in the scope of questions/analysis that could be undertaken. 

Coming back to the key findings of the survey, then one question I asked Pete was whether or not big data is a silver bullet for data integration. My motivation was that the survey and much of the press you read talks about how big data can pull all the systems, data and calculations together for better risk management, but while I can understand how massively scaleable data and calculation capabilities was extremely useful, I wondered how exactly all the data was pulled together from the current range of siloed systems and databases where it currently resides. Pete suggested that this was stil a problematic area where Enterprise Application Integration (EAI) tools were needed. Another audience member added that politics within different departments was not making data integration any easier, regardless of the technologies used. 

Overall a good event, with audience interaction unsurprisingly being the most interesting and useful part.

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00e550575fab8833017d3e5a570e970c

Listed below are links to weblogs that reference Big Data - Integration still a key (external) issue:

Comments

The comments to this entry are closed.

Xenomorph: analytics and data management

About Xenomorph

Xenomorph is the leading provider of analytics and data management solutions to the financial markets. Risk, trading, quant research and IT staff use Xenomorph’s TimeScape analytics and data management solution at investment banks, hedge funds and asset management institutions across the world’s main financial centres.

@XenomorphNews



Blog powered by TypePad
Member since 02/2008