About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Podcasts

The Next Wave for Trading Infrastructure Analytics

Subscribe to our newsletter

How are analytics applied to electronic trading infrastructure? What is so important about time accuracy? And how can you gain complete visibility into all the transaction processes with a view to answering questions from the business? Corvil CEO Donal Byrne addresses these questions and more, in a wide-ranging discussion on the potential for trading analytics going forward.

Over the past five or six years, electronic trading infrastructure has been all about providing transparency – understanding exactly what is going on and why. An initial focus on latency – measuring speed – developed into an exploration of how to accurately measure time, and the importance of visibility throughout every step of the order transaction. This is referred to as machine time – being able to track events on the timescale that machines make decisions. According to Byrne, the first wave of analytics was about trying to achieve this picture – accurately portraying the transaction lifecycle at every stage in order to be able to explain what happened and why. “It is about joining the dots between what the business is asking, versus what the infrastructure is doing,” he explains in the podcast.

The next wave, however, is more forward-looking – and according to Byrne, is all about the application of machine learning to machine time data. Specifically, identifying what type of problems machine learning, AI and cognitive computing are appropriate to solve, and what aspects of these technologies are useful in doing so.

He offers three examples of work that Corvil has ben doing to explore this area: including how to use machine learning to get a better understanding of order outcome (and using that learning to optimize the outcome of orders); how machine learning can be applied to MiFID II compliance prediction (for example, in terms of developing an algorithm to predict the final end-of-day order to trade ratio); and finally the exciting new possibility of industry benchmarking of infrastructure analytics – including an estimate of cost-to-lead.

“We all know about transaction cost analysis, but we think that the next wave is going to focus on transaction quality analysis,” predicts Byrne. “The aspects of optimization, forensics, benchmarking and compliance are going to be at the forefront.”

To find out more about the possible applications of machine learning and other new developments that are driving the future of electronic trading infrastructure analytics, listen to our podcast.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Unlocking Competitive Edge with Outsourcing and Managed Services in Trading Technology

Outsourcing has emerged as a strategic solution for capital markets firms as trading technology infrastructures become more complex, data volumes grow exponentially, and regulatory pressures intensify. .By leveraging third-party expertise, firms can optimise operations, reduce costs, and focus on innovation in their trading technology stack. Outsourcing potentially enables firms to scale seamlessly, meet regulatory reporting...

BLOG

Navigating Divergent AI Regulation – Can Standards Bring Clarity?

Artificial intelligence is transforming financial services, from automating credit assessments to streamlining compliance processes. But while AI capabilities are developing at pace, regulatory frameworks are struggling to keep up. Nowhere is this more apparent than in the contrasting approaches taken by the European Union and the United Kingdom. The EU has opted for a rules-heavy,...

EVENT

AI in Data Management Summit New York City

Following the success of the 15th Data Management Summit NYC, A-Team Group are excited to announce our new event: AI in Data Management Summit NYC!

GUIDE

The DORA Implementation Playbook: A Practitioner’s Guide to Demonstrating Resilience Beyond the Deadline

The Digital Operational Resilience Act (DORA) has fundamentally reshaped the European Union’s financial regulatory landscape, with its full application beginning on January 17, 2025. This regulation goes beyond traditional risk management, explicitly acknowledging that digital incidents can threaten the stability of the entire financial system. As the deadline has passed, the focus is now shifting...