Tuesdayâs collapse of the Dow Jones Industrial Average and the failure of exchange-related systems to keep up with trading data volumes further signals the need to replace legacy technologies and custom-coded applications with scalable, high-performance Complex Event Processing (CEP) systems. These CEP systems can process up to millions of messages per second in real-time. As data volumes continue to grow exponentially â such as those on the NYSE which surged to 2.41 billion shares on Tuesday â custom-coded and many electronic trading systems are not equipped to process the increasing quantities of real-time data crossing the wire.
âTodayâs markets are driven by increasing data volumes and widespread adoption of automated trading, and on Tuesday the markets saw heavy trading volumes which we now know overwhelmed existing systems,â said Sang Lee, Managing Partner of Aite Group. âThe rapid plunge in a key index resulting from the data backlog, combined with the overload in electronic systems, highlights the need and growing demand to upgrade core financial infrastructures. As a result, we expect to see demand for high-performance CEP systems substantially increase because of their inherent ability to manage these exponential increases in market data.â
The leading high-performance CEP software, developed by StreamBase Systems, processes, analyzes, and responds to stock market data at volumes ranging from hundreds of thousands of messages/second up to millions of messages/second. As the worldâs fastest and most scalable CEP platform, StreamBase is used by major investment banks, hedge funds, and exchanges to quickly build real-time market data applications including automated trading, real-time analytics and index computation, pre- and post-trade compliance, and market data processing.
âYesterdayâs failure of systems and the resulting anxiety could have been completely avoided if the right systems were in place,â said Barry Morris, Chairman and CEO of StreamBase. âThe inability of systems to keep pace with the high trading activity can shatter the market, as we saw happen yesterday. Thereâs never been a more critical time, post 9-11, to make an infrastructure change from legacy systems and inflexible custom-coded applications to a 21st century technology built for todayâs high-volume, low-latency processing demands.â