Big Data, Small Print
![james-rundle-waters james-rundle-waters](/sites/default/files/styles/landscape_750_463/public/import/IMG/283/261283/james-rundle-waters.jpg.webp?h=4a6b0616&itok=EjSrsvc6)
We all knew that cloud would be a game changer, even if its ascent has been a rather torturous one. From the dissection and dissemination of the very concept - a process that took years─through to the more mature developments and deployments that it's seeing today, it's definitely changed not only the presence of hardware and traditional computer models in banks, but also how we perceive data. Coupled with the emergence of big data as a concept, information as a whole has become the most important asset that an IT department enables.
I say enables, because it's not always the sole provider of information. That's generated at the source, such as front-office activities, handled by accounting systems, position engines, risk models, reporting caches and more, but it all uses the avenues provided by IT through a firm's architecture. Increasingly, though, a lot of information is being generated outside of that architecture, thanks to cloud in part, at third-party vendors or outsourcers.
Service Liability Agreements
The increasing importance of service providers, whether they provide cloud or managed services, to the IT ecosystem has also changed the way in which their offerings are contracted. It's not just enough to have a service-level agreement (SLA) that promises five-nines uptime and a vague promises of 24-7 support, any more. Consumers are more demanding, and more informed, asking for a range of assurances and evidence that a network or service can, in fact, provide what it offers.
A while back, I went on a tour of London's Victorian sewers, where fiberoptic provider Geo Networks has its cabling dozens of feet underground. At the European Trading Architecture Summit (ETAS) last week, Geo's CEO, Chris Smedley, told panelists how his customers will now sometimes walk the entire length of the network to check that it does extend as far as they say. I only walked around fifty feet in either direction, which was enough, and I can safely say that making your way through 20-40 miles of sewer is a mark of dedication.
That's a pretty extreme example, of course, but the enhanced forensics on a company's practices before taking on a service are well known. With issues such as cybersecurity at the fore now, firms want to know about security procedures at a vendor (including biometric identification for data access, now), about supply-chain integrity, about staff backgrounds, and who will be allowed access to what at which times. There's an element of covering your own back side to this, as well─should problems develop, a firm can demonstrate due dilligence, hold its hands up, and say it's not to blame.
A while back, I went on a tour of London's Victorian sewers, where fiberoptic provider Geo Networks has its cabling dozens of feet underground. At the European Trading Architecture Summit (ETAS) last week, Geo's CEO, Chris Smedley, told panelists how his customers will now sometimes walk the entire length of the network to check that it does extend as far as they say.
Printed Paper
SLAs, therefore, and the operational procedures built around them, are definitively changing along with the way in which information is both transmitted and received. The standard of service, too, is altering. And rightly so. Banks are sometimes outsourcing entire processes to third-party firms, and regulators such as the Financial Conduct Authority (FCA) in the UK are justifiably concerned.
This is more important than ever in the realm of big data, where regulation is mandating a huge increase in data storage (and retrieval), as well as starting to look at the processes around how data is collected─its lineage, if you will. Having a tight control over the way in which services and infrastructure are provided therefore stretches further than going above and beyond best practice, and into the harsh light of necessity.
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.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
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. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
BlackRock to integrate Aladdin and Preqin to create new private markets platform
CEO Larry Fink calls combining the two platforms “maybe the biggest opportunity in 10 years.”
Ace high or busted flush? Digital Asset’s mixed fortunes mirror DLT adversity
The vendor hoped to remodel post-trade using blockchain technology—and it still might—but its bumpy progress raises questions over the future of DLT in finance.
This Week: BlackRock/Preqin, Trading Technologies, FIA Tech and more
A summary of some of the past week’s financial technology news.
Adaptive’s Aeron goes live on Microsoft Azure Marketplace
The messaging software used for building bespoke trading platforms is now available on Microsoft’s marketplace, making it accessible through major cloud providers.
Bloomberg, industry bodies push back on Cboe’s proposed OEMS rule change
Some industry bodies disagree with the options exchange’s proposal to carve its Silexx OEMS out of the SEC’s definition of an exchange facility and place it into a separate business line.
Waters Wrap: CME, Google and the pursuit of ultra-low-latency trading
CME Group and Google have announced Aurora, Illinois, as the location for the exchange’s new co-location facility. Anthony explains why this is more than just the next phase of the two companies’ originally announced project.
WatersTechnology latest edition
Check out our latest edition, plus more than 12 years of our best content.
Natixis refines in-house interoperability model
The French asset manager has refined its canonical data model over the last decade, as the interoperability movement continues to evolve.