Driven by the growth in electronic trading, characterized by low margins, Sybase Inc. has designed this solution specifically for supporting trading applications in the capital markets.
The platform is composed of three interlocking software products, which work together to feed trade data into user-selected models.
The first piece is Sybase IQ, an analytical database, which can store massive quantities of market data while enabling fast queries.
The second piece is an optimized data model that describes each unique capital market data instance.
"Our data model differentiates our solution because it accurately describes the capital market," says Ian Warfard, director of the financial solutions group at Sybase.
The top level of the platform is Sybases Power Designer, which lets users extend the model and manage the operation of the Sybase IQ database and data model.
The platform ships with it a number of sample trade and quote queries that automate several algorithmic trading models, such as VWAP (volume weighted average pricing) and TWAP (time-weighted average pricing).
Warfard says that Sybases customers are demanding the ability to store historical trade data.
The Sybase Risk Analytics Platform consolidates multiple products and data feeds and puts them in a single repository.
Warfard notes, "What were doing is providing as part of our Risk Analytics platform the ability to consolidate all those silos of information into a single repository."
Dean Marchetti, director of engineering at Sybase, says, "With Sybase Risk Analytics Platform, we deliver a unique consolidated risk and trade data repository that is actually capable of capturing and consolidating volumes of real-time market data and deep historical data to support more effective, near real-time trading analytics. This allows our customers to spot trends and opportunities buried in the data and act on them ahead of the competition."
Many capital markets customers worldwide currently use Sybase IQ as the engine to support their risk analytics and trading solutions, including eSpeed, Millennium Partners, Citigroup and ITG (Investment Technology Group Inc.).
"As data volumes continue to increase at an almost exponential rate, it is imperative for financial sector companies to rethink their risk management solutions. As data speeds up and as more trading is done from the client site, firms need better ways to understand exposure, improve investment capital returns and remain competitive," said Larry Tabb, founder and CEO of The Tabb Group.