CEP Moves From Wall Street To Main Street

by Roger Smith, InformationWeek
Amid the economic turmoil that’s gripped Wall Street the past few months, Adam Honoré, a senior analyst at Aite Group who specializes in brokerage and financial services technology, declares that “human factors such as poor risk management, not computerized trading,” are primarily responsible for the market’s current volatility.

Wall Street firms have used trading algorithms to search patterns in data for buying or selling opportunities for decades but, Honoré maintains, the present instability is because of the risk posed by collateralized debt obligations and other unregulated asset-backed security and structured credit products. “People should have better insight into the risks they are taking,” he says, citing new complex event processing (CEP) technology that can solve many of the risk management and compliance problems that financial firms currently face. According to Honoré, CEP engines can remove much of the risk in the market because they can absorb a wide range of information and normalize, aggregate, and analyze it in real-time. This can provide greater transparency and visibility to market information, not only for regulatory agencies but also for enterprises that want to better manage risk and stop regulatory infractions before the regulator spots them.  More…….