Trading Technology

02:58 PM
Leslie Kramer
Leslie Kramer
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Aite Group Looks at CEP Impact in Capital Markets

Aite Group, independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry, has released a new Impact Report that looks at the maturing market and myriad uses for Complex Event Processing (CEP). Based on interviews with vendors, standards organizations and data providers working with CEP vendors, the report examines opportunities for CEP both inside and outside of trading. It also provides lessons learned from the implementations of multiple projects, based on research conducted through interviews with capital markets technologists, who have deployed more than one application leveraging CEP technology.

With more technology organizations moving to process-oriented development methodologies focused on iterative deliverables in shorter time frames, CEP as a technology has been building a positive reputation in these frameworks, according to Aite. Most of the early initiatives started in trading, and with those initial successes, firms have identified other areas CEP adds value. While trading and trade-related projects, such as smart order routing, account for 48% of existing use cases, areas like risk management and market data are making double-digit headway. Nearly a quarter of capital markets firms anticipate leveraging CEP somewhere in their enterprise in 2008, according to the Aite report.

"Many of the growing pains associated with adopting SOA at the enterprise level exist for CEP today, those lessons can be leveraged to smooth adoption and create a parallel architecture that fits within an enterprise umbrella," says Adam Honore, senior analyst with Aite Group and author of the report. "With a data horizon that looks ever-expanding, combining CEP with services, reporting solutions and business activity/business process tools offers the promise of managing a real-time business intelligence enterprise for firms willing to establish the appropriate constraints around a very flexible technology," he adds.

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