Sybase Extends Leadership in Real-Time Risk Management for Capital Markets

Sybase, Inc., an SAP company, says it is seeing significant adoption momentum of Sybase CEP, a complex event processing (CEP) technology for performing analytics on high speed streaming data.

Sybase is strong in the data-intensive financial services industry, with its technology used by the top 25 global banks and 48 of the top 50 global financial and securities institutions, according to the company. In addition, Sybase says its CEP solution has recently been adopted by two additional key financial institutions, ClientKnowledge, a research, analysis and advisory firm, and The Sumitomo Trust and Banking Company Co., Ltd., to enable real-time risk management.

More than simply the need to deal with high volumes of data, which has always been a consideration in the financial services arena, what is increasingly driving adoption of CEP now is the desire for more real-time intelligence, Jeff Wootton, senior director of product management with responsibility for CEP and real-time analytics at Sybase, tells 5 Minute Briefing.

Wootton observes that people have been building applications that do complex event processing in the capital markets for years, although they haven't called it CEP and they haven't had off-the-shelf tools to do it. What is new, he says, is the availability of commercial technology that makes it easy to do that. Firms are now seeing ways that they can use this technology to get real-time insight in places that didn't have it before.
According to Sybase, its CEP provides intelligence on high-speed streaming market and trade data with minimum latency, enabling capital markets firms to analyze data and act on it faster than competitors.

In addition to identifying patterns on streaming data to help traders take immediate action, Sybase CEP also enables risk managers to aggregate trade data across multiple systems and monitor trader activity to calculate risk and P&L in real time. For example, Sumitomo Trust and Banking Company Co., Ltd. uses Sybase CEP in its foreign branches as the basis for its alerting and FX monitoring models, which it has developed to retrieve and analyze data in real-time and in a more flexible form.

Real-time position keeping and risk management is "one of the hottest growth areas for CEP," says Wootton. Companies have had real-time position keeping for a while but real-time valuation, real-time P&L, and real-time risk and exposure management is new, he says. "They haven't had that in real time. It has been implemented using traditional database tools, where you run reports after the fact. CEP is enabling this real-time insight and firms are seeing real value from that."

For more information on Sybase's Capital Markets industry solutions, go here.