Big Data and the UTP Rollout

By Christine Sandler

Christine Sandler is Executive Vice President, Global Sales for NYSE Euronext. Ms. Sandler is responsible for all aspects of the company’s sales and marketing efforts to buy-side and sell-side customers. She oversees client relationships, manages the sales team, plans and executes marketing activities, and leads cross-selling activities for the company’s full suite of equities, fixed income, derivatives, and market information products throughout North America.

Big data is transforming our lives and the way we think. It is also transforming our financial markets. NYSE Euronext’s Universal Trading Platform makes the point. The NYSE and NYSE MKT rollout for the new matching engine concluded in February. Since then the platform, which streamlines and integrates our trading systems across all of our equities and derivatives markets, has set records.

It provides outstanding value to customers and is setting benchmarks in terms of scalability, capacity and ultra-low latency. U.S. cash customers will now see order acknowledgements reduced from 1.0 milliseconds a roundtrip on the old system, called Display Book, to 375 microseconds a roundtrip on the Universal Trading Platform. (For anyone who wants a refresher, a millisecond is one thousandth of a second; a microsecond is one millionth of a second.)

UTP is already in place at NYSE ARCA, NYSE Euronext Cash, NYSE Liffe, and NYSE Amex and ARCA Options.

In addition to the system’s lower latency and higher throughput, the engine provides the flexibility to offer new order types and services quickly.

Meanwhile, interest in the platform among world exchanges continues to spread. Not only is it used in London, Paris, Lisbon, Amsterdam, and Brussels, in April, UTP debuted on the Warsaw Stock Exchange. The engine boosts the WSE’s ability to trade —It can now handle as many as 20,000 orders a second, up from only 850, according to its website.

 

Polski: Budynek Giełdy Papierów Wartościowych ...

Polski: Budynek Giełdy Papierów Wartościowych w Warszawie (Photo credit: Wikipedia)

And that brings me back to Big Data--that 2.5 quintillion bytes it has been estimated the world creates daily. In a recent article in Harvard Business Review, Andrew McAfee and Erik Brynjolfsson of MIT write that for many situations, the speed of data creation is more important than the amount of data created. “Real-time or nearly real-time information makes it possible for a company to be much more agile than its competitors,” they point out. In one instance, researchers used location data from mobile phones to infer how many people were in Macy’s parking lots on Black Friday. This information enabled them to estimate the retailer’s sales on that bellwether shopping day even before consumers had stepped up to Macy’s sales registers. “Rapid insights like that can provide an obvious advantage to Wall Street analysts and Main Street managers,” the authors write. They go on to say that without a strategy, big data can overwhelm, not improve, an organization and its results.

So when it comes to Big Data, what’s your plan?

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