Data Management and Analytics for Changing Regulatory Regimes
Market and Trade Surveillance
MiFID II Market Transparency
Kx Data Refinery
Consolidated Audit Trail (CAT)
Professional Services to Support Technology
As a complement to Kx technology, First Derivatives Regulatory and Compliance Practice boasts practical, execution-focused professionals who implement change across prudential, market structural, and conduct-related regulatory regimes. The technology DNA of Kx coupled with the business insight of FD’s Regulatory and Compliance Practice present a unique perspective on deploying technical solutions for regulatory purposes and the common challenges that often occur.
Deep domain knowledge, regulatory understanding, and technology DNA drive the engagements we undertake across European, US, Canadian, and Asian regulations, ultimately delivering solutions for our clients for current and anticipated regulatory demands.
Built on the world’s most performant time-series platform, Kx for Surveillance offers real-time, T+ 1 and on-demand Surveillance capabilities with first, second and third lines of defence catered for in a single solution.
Key attributes of the solution include:
• Out of the box Surveillance solution
• Full library of MAR / REMIT models
• Support of all asset classes
• Global platform with unparalleled performance and scalability
• Configuration and granularity of models and thresholds
Kx for Surveillance offers unparalleled flexibility on top of a core surveillance platform used by numerous trading organisations including finance, energy and commodities.
At its core MiFID II compliance is about data, and Kx has many years’ experience in dealing with the key data management challenges that institutions face:
• Large volumes of internal and external data;
• Data shackled in silos and legacy applications;
• Lack of data being harmonized to a common meaning;
• Data cleanliness and presentation; and,
• Data consistency across applications.
Kx’s solution combines strategic thinking and tactical reaction to enable meeting not only the MiFID II obligations of today, including Best Execution Monitoring and Best Execution Reporting (RTS 27 & 28), but also the evolving regulatory demands of tomorrow.
Kx Data Refinery adds value throughout the organization by providing quants, auditors and compliance terms access to a common, consistent and validated source of data that they can query easily, perform calculations on and share securely with others.
It is designed to take the data management and processing burden away from the user and let them concentrate instead on exploiting its potential.
Kx Data Refinery is built on Lambda/HTAP architecture and provides a high performance platform for time-series operations on both real-time and historical data seamlessly.
Solving the CAT reporting challenge is a complex internal discussion for the broker/dealer community. Gathering together all the required data elements in an operationally efficient manner is now capturing most of the attention. What then?
Kx for CAT is a full stack solution built to publish reports to the CAT Utility and communicate with your front- and middle-office systems. It collects all order event data in native messaging formats, configures it to a unified data model for multi-application usability, and further configures CAT specific message fields to the CAT data model. It publishes the report, receives the exceptions file, and manages the correction/resubmission processes.
Kx for CAT maintains a full audit log with state recreation and market reconstruction capabilities, in a regulatory compliant and performant datastore.
The basis for Kx Technology is a unique integrated platform which includes a high-performance historical time-series columnar database called kdb+, an in-memory compute engine, and a real-time streaming processor all unified with an expressive query and programming language called q.
Designed from the start for extreme scale, and running on industry standard servers, the kdb+ database has been proven to solve complex problems faster than any of its competitors.
Kx's time-series database is optimized for Big Data analytics. The columnar design of kdb+ means it offers greater speed and efficiency than typical relational databases. Its innovative native support for time-series operations vastly improves the speed and flexibility of queries, aggregation, joins, and analysis of business information – be it structured, semi-structured, or key value data.
Kdb+ is different. Its built-in functional array language, q, includes a superset of SQL that operates directly on the data, removing the need to ship query results to other applications for analysis. Kdb+ and q make full use of the intrinsic power of modern distributed architectures, delivering unparalleled performance, proven again and again in industry benchmarks and real world experience.
Getting bigger without getting slower.
The design of kdb+ allows it to easily scale horizontally and vertically as data volumes grow, without losing performance.
Banks, trading firms and financial institutions have used Kx technology for lightning fast processing of vast amounts of data for over two decades, before the phrase "Big Data" was even coined.
Today sectors including retail, utilities, telecommunications, pharmaceutical, oil and gas, and genome research are adopting kdb+ to solve their Big Data problems as they find more stack-based architectures are proving too expensive and slow to scale efficiently.
On disk. In memory. Streaming.
For many businesses, the promise of Big Data analytics was the ability to use both streaming and the vast amounts of historical data effectively.
However, the reality found by many is having to install a stack of different solutions from different vendors. Each layer in the stack brings its own set of compatibility, maintenance, and support issues, often requiring a plethora of different skill sets. Kx Technology can address every part of the data-stream as it passes through the business, in a single unified architecture.
Historical disk-based data, in-memory databases, the complex processing of events, and real-time streams are all managed by Kx using just one underlying technology. Analysis of historical trends can be re-used for real-time analytics, creating tremendous reductions in development time and ongoing maintenance costs.
Kdb+'s exceptional speed in analyzing data, wherever it is stored, enables businesses to visualize its complexities in ways they found impossible before.
More costs less.
When choosing a technology platform, a seemingly difficult balance needs to be achieved between the bottom-line impact of real world costs, and the top-line benefits of rapid delivery, high performance, and ability to meet the changing requirements of the business. Kx Technology demonstrably allows for both, without compromise.
Our market-leading efficiencies of hardware utilization, the lower footprint, the lower maintenance and operational costs coupled with the otherwise unheard of productivity with developing in the kdb+ environment means that a Kx implementation will always work out to be more cost effective than alternatives.
In conjunction with this, the Kx Technology platform has both the tooling and the underlying language, q, that our customers tell us enables for the very rapid development of full solutions, thus delivering to the business the rapid change ability that the top-line demands.
In the latest of our series of Kx newsletters with Gartner research, Dan Seal describes how the Kx Data Refinery (formerly Kx for DaaS) brings all of the hard-won experience and battle-hardened technology Kx has developed for financial markets over the years into a platform that can be used for real-time and historical data capture and analytics across any business vertical.
The time for general discussion of MiFID II is now over for European banks, trading venues and asset managers with deployment mandated for less than a year away. Market participants have earmarked budgets, with tier one banks alone expecting to spend $40 million each to comply with the new rules, and the process of retooling and designing new infrastructure. In this article Kx’s Mike Gorman looks at key implementation issues for best execution under MiFID II
New market structural reform rules are disrupting how financial institutions are doing business — in a good way. Traditionally banks’ compliance departments have had the luxury of churning out reports to satisfy the regulators, and then filing them away. Those days are gone. Greater amounts of data, on more types of products, now must be analyzed and reported upon more quickly. This is forcing all operational areas, from the back-office to the front office, to upgrade their technology stack in response to the new regulatory regime. In the process, they are discovering a silver lining.