An independent Aite Group research study advises that financial services firms confront the shortcomings of their existing enterprise data architectures today--before market data volumes once again ascend to the limits of technology's capacity to support them when better markets return.
For this report, Aite Group conducted interviews with market data heads at 10 firms ranging from small, high frequency trading shops to some of the largest buy-side and sell-side firms in the world. They also spoke with several exchanges, hosting providers, and market data providers.
Key findings include the following:
- Aite Group expects U.S. equities message traffic to double from current volumes in the next two years.
- U.S. equity data storage needs are currently growing 18% per month.
- Market fragmentation in Europe (and eventually Asia) will cause multiple repeats of current U.S. equities market data issues.
- Foreign exchange (FX) storage requirements are growing at twice the rate of equities storage requirements.
- There is a high level of interest by electronic trading firms to add unstructured content into trading models.
The white paper examines electronic trading trends associated with market data volume, and considers how those trends may evolve in the future.