What’s Behind CEP’s Leaps and Bounds? Automation

Information Management Report

The market size for complex event processing (CEP) systems in the financial industry has grown to roughly $115 million this year, and is expected to grow by around 30 percent every year for the next two years, according to a report released by the research and consulting firm Celent.

In the report, titled “Complex Event Processing: Looking Beyond Algorithmic Trading,” data volumes are increasing exponentially due to growing automation. Trading venues and exchanges are responding to the challenge by upgrading their IT infrastructure to handle large data volumes.

Trading firms too are pressed to expand their data processing capabilities, and therefore there is a growing need for sophisticated analytics for mining large volumes of data.

Such analytics includes complex event processing, a category of technology that allows algo traders to respond to a variety of market data, including current events and news, in order to generate trading orders, by providing high-speed responses to specific patterns or triggers in real-time data.

The financial crisis of 2008 was a driver for greatly increasing demand for this technology, as CEP is being used for continuous and more granular risk monitoring applications.  ………………

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Moving forward, the report says that complex event processing will be used increasingly for multiple applications within a single firm. As a result, enterprise architects will need to rethink their infrastructures and evolve them in ways so they can handle multiple instances of data being used by variety of different modules in real time.  Report