Complex Event Processing in Asia-Pacific

Addressing Risk Management and HFT Requirements
by Anshuman Jaswal, PhD, December 23, 2011
Product Trends/ Reviews
Asia-Pacific

Abstract

A vital development in the global capital markets over the last few years has been the sharp growth in the volume of data that is relevant for functions such as trading, risk management, and compliance. It is imperative for firms to equip themselves to manage these data volumes. Otherwise they run the risk of becoming slow and ineffective, threatening profitability and long-term survival.

In a new report, Complex Event Processing in Asia-Pacific: Addressing Risk Management and HFT Requirements, Celent discusses the growth in market data volumes and studies the benefits that complex event processing (CEP) technology can provide its users. CEP has become a tool for handling the rapid evolution in the financial markets. Importantly, it is not only a means of coping with change, but also generating higher returns, because it enhances a firm’s competitiveness and efficiency.

In 2011, when technology decision-makers from major financial services firms globally were asked in a Bloomberg survey regarding which infrastructure investment areas have yielded the most return on investment in the previous year, 33% of the respondents chose low-latency trading and 23% mentioned complex event processing. CEP is thus being perceived as an important revenue generator by financial firms.

“Market data volumes have seen a drastic rise in the last couple of years,” says Anshuman Jaswal, Celent Senior Analyst and author of the report. “Firms not only have to expand their capacity to process such volumes but also need to look at solutions such as CEP technology to remain relevant in this changing market environment.”

This study has been commissioned by Sybase. However, it presents Celent’s independent analysis of the trends driving adoption of and the needs for complex event processing in the capital markets, with a special focus on Asia and Hong Kong. The report provides an overview and discusses the key trends in the market data landscape in Asia. It studies the main challenges in using solutions such as complex event processing engines. It also enumerates the various uses of complex event processing in the leading capital markets in Asia.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

4

 

Key Trends

6

 

Core Challenges of Implementing Event-Driven Architectures

7

Uses of CEP

10

Conclusion

13

Leveraging Celent’s Expertise

14

 

Support for Financial Institutions

14

 

Support for Vendors

14

Related Celent Research

15

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