Capital markets firms use vast amounts of historical and streaming market data to perform real-time analytics. They also use data to inform decision-m

Optimize data analytics in capital markets with time-series databases

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2021-05-31 12:00:09

Capital markets firms use vast amounts of historical and streaming market data to perform real-time analytics. They also use data to inform decision-making, from projecting asset-pricing movement and fund values to calculating risk assessments. However, traditional on-premises relational databases and data management systems can fall short on delivering the functionality, agility, speed, and cost efficiency that these institutions demand. In this post, I discuss some of the principles in the recent AWS Marketplace webinar, How to optimize data analytics in capital markets with time series databases on AWS.

A time-series database (TSDB) stores, catalogs, and retrieves data records that are part of a time series, or a set of data points associated with timestamps. The timestamps provide critical context for each of the data points in how it relates to others. TSDBs are purpose-built and designed to simplify the analysis of large volumes of data over blocks of time. Much of the success in using TSDBs comes from inserting new data by time horizon or granularity. Time horizons are periods where investments are held until they are needed. This new data insertion helps enterprises to generate timely results and support complex risk analysis or trading model backtesting. Backtesting is a method of evaluating the effectiveness of a trading strategy by running it against historical data to see how it would have fared.

TSDBs on AWS enable customers to innovate and scale your data-processing and analysis capabilities without requiring significant capital expenditure (CapEx) commitments. With this operational model, investment firms can simplify how they capture and monitor data and deliver improved market analysis and models in a timely fashion. TSDBs and other financial services solutions are available in AWS Marketplace, a digital catalog of independent software vendors that gives AWS customers a way to discover, buy, and deploy software that runs on AWS. Financial services customers can deploy TSDBs and start experimenting without the overhead of acquiring new hardware and with the comfort of pay-as-you-go (PAYG) services.

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