Big Data and BI: Transforming the Capital Markets Ecosystem

Big Data and BI: Transforming the Capital Markets Ecosystem

By Capital Markets CIO Outlook | Thursday, August 01, 2019

In the capital market, big data plays an incredibly significant role. Companies are readily investing in big data and BI solutions to stay competitive.

FREMONT, CA: Business Intelligence (BI) solutions begin to support trade choices with their potential to process significant quantities of structured and unstructured data. Here is how big data and BI influence capital markets.

Data Science in Financial Trading

Data scientists are even more demanding than the resources of engineering. This is partly because, the sheer quantity and range of data are often too complicated to serve on accessible dashboards that are understandable to traders, unlike in some other business areas. Instead, information researchers need to define subtle patterns of information and use complicated algorithms to create actionable ideas. Therefore, the growing use of big data and business intelligence in financial trading is excellent news for the technology sector.

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Big Data: New Type of Trader

Decisions are becoming progressively better educated for traders with access to big data and financial BI and are therefore subject to less danger. Risks can be further mitigated by applying predictive business intelligence, enabling traders to evaluate the likely result and return rate of each transaction.

Quant Hedge Funds: Big Buyers of Big Data

Big data availability, whether bought or not, has also provided rise to an entirely new form of trading entity— the quant hedge fund. In some ways, these are comparable to traditional or "basic" hedge funds, but they rely on digital algorithms and models to select and initiate deals almost entirely. Quant hedge funds need vast amounts of information because of their business model, and ironically, their appetite has transformed information sales into one of the most profitable operations in the financial sector.

It is undeniable that big data and business intelligence play a massive part in impacting the financial market, and it is the only legal way that individuals and businesses can gain the upper hand in predicting where to invest and when to sell stocks, helping to add value to the financial market.

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