The Laboratory for Financial Innovation at China’s Shenzhen Stock Exchange (SZSE) is implementing Kx Systems’ kdb+ high-performance database and programming language as the basis of a data analysis platform for market risk assessment, market performance analysis and trading simulations.
The Laboratory provides internal services to the exchange and before selecting the Kx Systems solution was using a traditional database with business intelligence tools and analytics software for data analysis. Jibao He, director of the Information Management Department at the Laboratory for Financial Innovation, explains: “We strive for excellence in the technology we use to monitor and report on the Shenzhen securities markets. We needed new technology for big numeric data analytics and data mining. We selected Kx Systems because it provides a unique technology offering high performance, great power and flexibility in financial time-series analytics.”
The laboratory is working towards going live with the Kdb+ technology in June 2015. In the meantime, early stages of the project are expected to include data volumes in terabytes and user numbers no greater than 10. These stages will focus on risk assessment and monitoring of stock and bond markets, as well as big data analytics. Longer term, He says: “Kkdb+ will be used for market risk assessment, analysis of market performance, trading simulations, data mining and other data analytics.”
This is Kx Systems’ second win in China following an OEM contract made with Guosen Securities back in 2011. More deals are in the pipeline across Asia, as well as in North America and western Europe. Commenting on the company’s latest win, Janet Lustgarten, CEO of Kx Systems, says: “The complex and innovative analytic problems that the Laboratory for Financial Innovation at SZSE is solving with kdb+ showcase the opportunities for our software in the Asian market. The laboratory will be developing systems that are at the cutting edge for exchange surveillance globally.”
As well as success with its 64-bit database platform that is designed to deliver performance and flexibility for high volume, data intensive analytics and applications, Kx Systems says the free 32-bit version of kdb+, essentially an unsupported version of the software with a limit on main memory that was released in April 2014, is also gaining interest among firms as a test environment.