Opening Cross: Let’s Face The Music And Dance
Worried about market volatility? Thankfully, there are plenty of tools and experienced professionals to help you through any uncertainty.

If you’re still in shock at the US election result—regardless of whether you supported Trump or Hillary Clinton—you might be tempted to throw out every intelligence tool or analytics program you’ve ever relied on to support an important financial or business decision and start again from scratch. While it’s true that no serious source accurately predicted the outcome*, it may be premature to panic about what degree of certainty you can place in future decisions.
(*Actually, that’s not entirely true. Statistical political analysis website Fivethirtyeight.com’s Nate Silver didn’t back Trump to win, but did accurately predict that he had as much chance of winning as the Cubs did.)
It’s certainly true that there will be a period of uncertainty and perhaps instability as the markets react to the reality of a Trump presidency. How long this lasts will likely depend on what he does between now and when he takes office to flesh out policies, set up a strong cabinet, and make peace between two political parties—as well as in-party factions—that couldn’t be more polar opposites.
However, political and economic uncertainty is good news if you’re a volatility trader. And there’s even more good news for vol traders: Australian index firm T3Index has created a suite of US dollar and euro-denominated volatility indexes that will give investors the potential to trade volatility more directly than by using swaptions. Even better news: T3Index will make its data available for free, and only charge those who license the indexes to create tradable contracts.
Wth increased volatility may come spikes in trading volumes. Unsure whether your trading platforms or analytics systems will be able to cope with uncertain markets? You’re in luck: low-latency ticker plant and feed handler vendor Redline Trading Solutions and remote systems monitoring and support provider West Highland Support Services have just the things for you.
Redline has begun offering clients access to a market simulator tool that it developed to test its own products, which is designed to behave in the same way as an exchange matching engine, and which incorporates clients’ own trading data for a realistic simulation of market activity. Not designed to gauge the success of clients’ trading strategies themselves, the tool instead tests the stability of the systems running those strategies before deploying them into a live market environment. Meanwhile, West Highland has created a dashboard that displays cost, contract and performance information sourced from the company’s various monitoring services, to give data managers and cost-conscious c-level executives an overview of market data’s impact on their business.
The reason West Highland can do this is its long-standing expertise in this space. Also recognizing the value of experience is low-latency data platform and feed handler provider Vela Trading Technologies, which has hired S&P’s Brian Cassin and ICE/Interactive Data’s Ollie Cadman to head product and strategy. Likewise, startup data platform Qineqt has recently brought on Ed Crespy—whose time in the industry includes 18 years at Bloomberg—as a data architect to work on the vendor’s data model.
Of course, if you don’t believe in appointing the most qualified candidates, you can always just resort to throwing mud at your rivals and hope some of it sticks, like the war of words that has arisen over the Chicago Stock Exchange’s proposed “speed bump,” which has attracted some choice words from Citadel Securities, alleging that CHX is just looking to artificially boost its data revenues. CHX says it is willing to compromise and run a test period to reassure its critics. Unfortunately, I suspect we won’t see that same flexibility among politicians for some time.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
DeepSeek success spurs banks to consider do-it-yourself AI
Chinese LLM resets price tag for in-house systems—and could also nudge banks towards open-source models.
Standard Chartered goes from spectator to player in digital asset game
The bank’s digital assets custody offering is underpinned by an open API and modular infrastructure, allowing it to potentially add a secondary back-end system provider.
Saugata Saha pilots S&P’s way through data interoperability, AI
Saha, who was named president of S&P Global Market Intelligence last year, details how the company is looking at enterprise data and the success of its early investments in AI.
Data partnerships, outsourced trading, developer wins, Studio Ghibli, and more
The Waters Cooler: CME and Google Cloud reach second base, Visible Alpha settles in at S&P, and another overnight trading venue is approved in this week’s news round-up.
Are we really moving on from GenAI already?
Waters Wrap: Agentic AI is becoming an increasingly hot topic, but Anthony says that shouldn’t come at the expense of generative AI.
Cloud infrastructure’s role in agentic AI
The financial services industry’s AI-driven future will require even greater reliance on cloud. A well-architected framework is key, write IBM’s Gautam Kumar and Raja Basu.
Waters Wavelength Ep. 310: SigTech’s Bin Ren
This week, SigTech’s CEO Bin Ren joins Eliot to discuss GenAI’s progress since ChatGPT’s emergence in 2022, agentic AI, and challenges with regulating AI.
Microsoft exec: ‘Generative AI is completely passé. This is the year of agentic AI’
Microsoft’s Symon Garfield said that AI advancements are prompting financial services firms to change their approach to integrating AI-powered solutions.