Data Management Tools Are the Only Way to Handle Big Data

There was a lot of press coverage about big data last week. IDC provided one of the best industry perspectives.

While much of the discussion around big data applies to the sell side, it also applies to the buy side. Take historical data, for example. In the simplified world of the past, before the heightened regulatory environment and the need to demonstrate transparency, the model used to be that portfolio management and accounting systems could overwrite the data and replace old data with new data without storing the previous values.

Fast-forward to today—the same business practice puts buy-side firms at serious compliance risks for not storing the correct historical data in the event of an audit. Scarily enough, a number of today’s portfolio management and accounting systems still overwrite data, and the most infamous of these are the legacy systems that we discussed in previous blog posts.

Smart firms will leverage technology providers who integrate data management tools into their core applications to help them with this important industry issue. Those providers who have already invested in data management technology are the best bets to keep buy-side firms from running into compliance issues. At the same time, data management tools and technology will help these same firms stay ahead of their competitors.

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David Csiki

Author

David Csiki is the Managing Director and President of INDATA, a leading industry provider of software and services for buy-side firms including trade order management (OMS), compliance, portfolio accounting, and front-to-back office technology solutions. Prior to joining INDATA, Csiki was Manager of Marketing and Investor Relations at NYFIX, Inc. and was instrumental in developing the product concept and planning the successful launch of the company’s flagship product, NYFIX, a FIX broker network.