USER CASE

Reducing costs of new market and product research for Professional Trading businesses Target: Quantitative Traders and Analysts, Heads of Product Development and Senior Executives.

CHALLENGES AND GOALS

► Quickly and economically estimate viability and profitability of expanding trading businesses into new markets or products.

► To produce reliable business analysis without committing to investments in operational and legal infrastructure.

► To remove lag time required to accumulate data for analysis.

► Prioritize improvements and upgrades based on expected business impact.

CASE DESCRIPTION

The first step was to purchase bulk date from different providers, such as Thomson Reuters, Bloomberg, or several Exchanges. Then, we run BEST Data Converter to clean data and realign order book events with trades. The data generated is stored in BEST Data Manager, 3rd part commercial database or in-house solution supporting standard databases interfaces. Then we created a virtual environment for running market simulations using BEST Constructor components: Exchange Simulators, Market data Simulators, SOR Simulators, Network Simulators. After that, we parameterized Market data simulators with latencies and traffic bottlenecks describing exchange distances and bandwidth limitations.

We then run simulations and analyze business and technical performance metrics using Performance and Business & Trade Monitor. Then, we create Functional, Performance, and Business Testing Environments using Constructor Components and Standard Testing Libraries and Scenario Packages. The software is developed and tested, while the system is being tested through standard design and development process. The results of tests are indexed and store, along with business simulations and code versions for further analysis, using BEST Evolution tools.

REQUIRED COMPONENTS

► BEST Studio

► BEST Data Manager and Data Converter, or client’s own high frequency data storage solution

► Market Data Simulators

► BEST Performance Testing package

► Exchange Simulators with Performance and High-Fidelity Simulation packages and Library containing rules of specific exchanges

► BEST Monitor with Performance and Business & Trading Package.