Liquidnet, the electronic marketplace for buy-side traders, has selected Coral8's (booth #1507) complex event processing (CEP) platform, the Coral8 Engine, to support the marketplace's "quality liquidity" strategy, the CEP vendor announced yesterday. Liquidnet, which has an average daily liquidity of 2.2 billion shares and serves asset management firms worldwide, allows buy-side investors to execute large blocks of equities directly and anonymously, creating as little market impact as possible.
Coral8's CEP platform will generate real-time intelligence for monitoring and analyzing trading activity on Liquidnet's network, as well as deliver granular execution metrics in real time, according to the Moutain View, Calif-based vendor. The platform also will enable Liquidnet to reduce any illicit trader activity, Coral8 adds.
Coral8 says Liquidnet — which operates in 29 global markets (as of early 2008) — is using the vendor's products specifically to protect market participants' anonymity and traders who don't want to expose liquidity. "Also, it helps them monitor in real time all their execution metrics, and they want to keep a very close eye on that," adds John Morrell, director of product marketing at Coral8.
Morrell points out that event processing is "really starting to come into its own." He says Coral8 currently has 50 to 60 customers, with "at least half of them on Wall Street."
"I would love it if more people would and could say how they're using Coral8, but they can't, as it's proprietary to their businesses," Morrell continues. "It's not that often we can tell their story," he laments.
Still, Morrell contends, CEP is starting to reach a "strong level of momentum." "Over the next few months, you're not going to just hear vendors talking about it, but also real live customers that have done interesting things with it," he says.
Coral8 says its engine offers speed and ease in developing, deploying and scaling CEP applications. Coral8 Engine's key features include the use of Continuous Computation Language (CCL), which gives Liquidnet developers a familiar SQL-based language for rapid coding of the analytics, according to Coral8.
The CEP platform also provides advanced event pattern matching features, allowing developers to easily identify and specify sophisticated trading patterns, according to Coral8. Further, the product scales to manage increased trading speed and data volumes, as well as accommodating new analytic requirements.