SYS-CON MEDIA Authors: Andy Thurai, Liz McMillan, Kevin Benedict, Zakia Bouachraoui, Elizabeth White

Blog Feed Post

Why I Joined Cloud Event Processing

First off, the names: Cloud Event Processing & DarkStar.  Not your typical Wall Street technology naming convention.  Add to that the chance to team up again with Colin Clark on his decades’ long quest to make sense out of massive volumes of “big data” – in real time.  But “What,” I was asked, “Does that have to do with Wall Street?”  My answer, after 20 years in Wall Street technology, was a short one:  “Plenty”.

When you say “Wall Street”, most of the world, think of Art Cashin, Ted Weisberg and the floor traders of the NYSE.  But as anyone in Capital Markets knows – that’s not where the real action is.  It’s one of the first lessons I learned in the 1980’s when I went to work for AutEx in Boston.   Founded in the late 1960’s to automate trading (Automated Exchange = AutEx) it instead became the de facto “indication of interest” matching system that allowed institutional traders to find the other side of huge block trades.

As a near monopoly, AutEx was the must-have system if you wanted to play in the lucrative and prestigious game of US equity block trading. The screen told you which brokers to call for what stocks, you picked up a phone, and the trade was on.  It was a WAN before there were WAN’s.  Before email.  Before the FAX, and “ax-lists”.

While almost all trading was still done by telephone, systems like AutEx and Instinet were pioneering the transmission of hundreds of thousands of messages to many hundreds of brokers and institutional trading desks.  The messages had to be targeted, and delivery guaranteed.   No small feat at the time.

Unbeknownst to us, we were all in the midst of an STP revolution.  STP (straight through processing) was the goal of automating all the disparate conveyer belts that made up the trading process – from trade idea, to order, execution and through to settlement.  In reality, this took a full 15 years to achieve across the industry.  And along the way my career, and the careers of many others, followed this evolution of electronic trading and messaging on Wall Street.

All was not always smooth.  At AutEx we created the first hub-based order routing network based on the FIX protocol in the mid 1990’s.  Shortly thereafter I helped entrepreneur George Kledaras launch the first commercially successful FIX engine so that firms could actually trade using FIX – the very protocol they were touting.  Progress was not always linear, but it was happening.

In time, the conveyor belts came together, one by one.  And since then we have seen a literal explosion of trade related data on Wall Street.  Driven by automation, algorithmic trading, penny spreads and black-boxes co-located in data centers, the results has been billions of shares traded a day – and the pace is not slowing.

So why did I join Cloud Event Processing?  Because to me, the trend is clear.  The evolution of STP is still ongoing – and will not stop at the boundary of any one data center, in any one city, or country, or asset class.  The ability to collect, process and intelligently analyze “big data” in Capital Markets is both a challenge and a necessity.

In full disclosure, I had previously worked with Colin in 2004 with his company IBSN, based in Denver.  As I’ve since learned, Colin was ahead of his time, offering what in effect was outsourced FIX connectivity services.  While sensible sounding today, the idea of a Wall Street firm outsourcing this was totally counterintuitive in 2004.  In addition to the FIX service was his data engine – the forerunner of DarkStar.  The future was there.  All that was missing was the future.

Fast forward six years to 2011.  In just a few years we witnessed stunning advances in technology, networks, processing power and algorithms.  Skyrocketing exchange volumes have resulted in an explosion of market data.  Colin and his team have worked on numerous facets of this revolution for over a decade, resulting in the latest and best iteration of their vision – DarkStar.  They are genuinely inspired by the challenge and importance of finding real, contextual meaning in these ever growing data streams.  Their work will create immediate benefits today in traditional environments.  But even more exciting, and important, is their vision of bringing this technology to the cloud – on Wall Street and elsewhere.

In many ways the nature of trading has not changed.  The workflow and the players are often the same as they were in the 1980’s.  But technology has radically changed the pace and scale of that workflow, and will continue to do so.  I have been lucky enough to work with some visionaries who understood how to harness those moments in time.  This is one of those moments.  I believe for Cloud Event Processing the future has finally arrived.

 

PrintFriendly

Read the original blog entry...

More Stories By Colin Clark

Colin Clark is the CTO for Cloud Event Processing, Inc. and is widely regarded as a thought leader and pioneer in both Complex Event Processing and its application within Capital Markets.

Follow Colin on Twitter at http:\\twitter.com\EventCloudPro to learn more about cloud based event processing using map/reduce, complex event processing, and event driven pattern matching agents. You can also send topic suggestions or questions to [email protected]

Latest Stories
In today's always-on world, customer expectations have changed. Competitive differentiation is delivered through rapid software innovations, the ability to respond to issues quickly and by releasing high-quality code with minimal interruptions. DevOps isn't some far off goal; it's methodologies and practices are a response to this demand. The demand to go faster. The demand for more uptime. The demand to innovate. In this keynote, we will cover the Nutanix Developer Stack. Built from the foundat...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, compared the Jevons Paradox to modern-day enterprise IT, examin...
"Cloud computing is certainly changing how people consume storage, how they use it, and what they use it for. It's also making people rethink how they architect their environment," stated Brad Winett, Senior Technologist for DDN Storage, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"NetApp's vision is how we help organizations manage data - delivering the right data in the right place, in the right time, to the people who need it, and doing it agnostic to what the platform is," explained Josh Atwell, Developer Advocate for NetApp, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Sold by Nutanix, Nutanix Mine with Veeam can be deployed in minutes and simplifies the full lifecycle of data backup operations, including on-going management, scaling and troubleshooting. The offering combines highly-efficient storage working in concert with Veeam Backup and Replication, helping customers achieve comprehensive data protection for all their workloads — virtual, physical and private cloud —to meet increasing business demands for uptime and productivity.
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin, ...
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
Rodrigo Coutinho is part of OutSystems' founders' team and currently the Head of Product Design. He provides a cross-functional role where he supports Product Management in defining the positioning and direction of the Agile Platform, while at the same time promoting model-based development and new techniques to deliver applications in the cloud.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settl...
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In their Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, and Mark Lav...
@CloudEXPO and @ExpoDX, two of the most influential technology events in the world, have hosted hundreds of sponsors and exhibitors since our launch 10 years ago. @CloudEXPO and @ExpoDX New York and Silicon Valley provide a full year of face-to-face marketing opportunities for your company. Each sponsorship and exhibit package comes with pre and post-show marketing programs. By sponsoring and exhibiting in New York and Silicon Valley, you reach a full complement of decision makers and buyers in ...
There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...