If data is the new oil, then how trading firms “drill” it in order to generate alpha becomes increasingly important. Galen Stops reports.
So often has the phrase been used recently that it’s in danger of becoming something of a cliché but, apparently, data is the new oil.
To see evidence of this, look no further than the technology giants that have emerged out of Silicon Valley. Yes, Facebook doesn’t charge users money for the social media platform it provides, but is it free? Arguably, users “pay” with the data that they create via their interactions on the platform, which Facebook is then free to use and sell to generate profits.
The paradox of data is, as observed by panellists at Forex Network Chicago, while the data itself is becoming cheaper and more easily accessible than ever before, the resources being allocated to analysing it are increasing, bringing with it increased costs.
“The core fundamental cost of collecting data and storing and processing it is cheaper than ever,” observed John Ashworth, CEO of Caplin. “The premium is going to be on the labour force that will be doing the work on the data.”
Seed CX, an exchange for institutional trading and settlement of spot digital asset products, announces that investors can now access its market via Deltix’s crypto-trading platform, CryptoCortex.
Deltix, which launched the CryptoCortex platform this year, provides quantitative research, analytics and algorithmic trading solutions for equities, futures, options and FX.
“Deltix’s CryptoCortex trading platform is preferred by the world’s most sophisticated quantitative trading firms and market makers, and we expect strong demand for trading on Seed CX’s spot and derivatives markets,” says Ilya Gorelik, founder and CEO of Deltix.