High velocity, volume and complexity - addressing the challenges of Big Data in FX

There are enormous advantages available for FX trading firms that are able to capture and analyse the universe of available data, but, as Dan Barnes reports, getting to grips with the massive wealth of information that’s out there is a considerable technical challenge.

The big data challenges that face traders in foreign exchange are the sheer volume of trading, amount of data and number of execution venues that are available. Following the FX fixing scandal, many large sell-side firms have found their clients turning to automated trading systems while senior traders were suspended during the various investigations. Automated trading drove up the demand for data that could be used to support price formation and transaction cost analysis to support trade decision making. Analyst firm Tabb Group estimates US$15.1 billion was spent on market data and market data infrastructure globally in 2013, with US$11.4 billion of that spent on data that had been aggregated in a feed or on a screen.  Peter Durkan, chief technology officer at financial infrastructure provider Lucera, says, “The market has certainly accelerated its use of technology and the onus is now on firms to keep up with this. The rise of application programming interface (API) driven trading and the...continued

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