Confusion about Event Processing (CEP): Overview of EP in the Capital Markets
Aite Group estimates that the potential market opportunity for EP solutions is just under US$ 1 billion from 2007-2010.
According to a new Impact Report from Aite Group, LLC, Event Processing (EP) solutions are poised to provide a compelling value proposition to a variety of firms in the capital markets space. The report looks at the evolution of EP and its expected and increasingly important role in the capital markets.
Event Processing has made an impressive showing in the algorithmic and strategy trading areas, and EP solutions are now migrating to other areas of the capital markets, such as data monitoring, compliance, Transaction Cost Analysis (TCA), risk management, proprietary data derivations, market making, and others. Aite Group estimates that while EP vendor revenues in 2006 were just shy of US$50 million, the potential market opportunity is nearly US$1 billion by 2010 due to the expanding data rates and the increasing reliance on real-time and event-driven solutions across the capital market space.
According to Brad Bailey, senior analyst at Aite Group and author of the report, "The Event Processing market is young, but 2006 represented an important year for vendors offering EP solutions. Its use in the algorithmic trading space helped define its direction in the capital markets. The capital markets represent a natural place for this technology, which is, fundamentally, based around the idea of processing data in a logical, temporal and ultra-fast way."