Netik, the New York and London based financial data management software firm, will expand its reach into the fast-paced trading arena, says its new chief executive Rob Flatley.
As first reported by Securities Industry News on April 9, Flatley was the global head of electronic execution of equities at Deutsche Bank before taking over the helm of Netik. Flatley replaced founder John Wise in a management shakeup in which Netik’s president and Wise’s longtime ally Colin Close will also depart over the next few months.
Flatley insists he has no intention of abandoning Netik’s historic strength in middle and back-office processing where accurate reference data is critical to reducing operational and other risks. However, he knows only too well Wall Street’s growing need to absorb a mindboggling amount of extra market data – and in shorter time spans to make quicker trading decisions.
“Netik’s goal will be to translate clean data into usable information for all aspects of the financial industry,” Flatley told Securities Industry News on Monday. “In that regard, we already have the capability to enrich and customize information from a multitude of indices and exchange traded products for use by index arbitrage, program trading and over-the-counter swap desks.”
Flatley says that Netik is also looking to package more types of data for immediate consumption by financial control systems; these include credit risk, funding, margin, capital adequacy and regulatory reporting.
Through its acquisition of Capco’s data management unit in February 2008 Netik inherited its global index monitor and global exchange traded funds (ETF) monitor products. That acquisition was part of a two-pronged restructuring of the firm with new funding from Netik’s new owner Symphony Technology Group. Netik was previously majority owned by Bank of New York Mellon, whose Eagle Investment Systems subsidiary is one of Netik’s competitors.
Netik’s Global Index Monitor standardizes all major index feeds into a single file structure while ETF Monitor offers accurate constituent data for the ETF marketplace. So far about forty broker dealers and indices firms use the products.
Netik’s new direction appears timely. It can now compete more aggressively with a growing cottage industry of enterprise data management software firms which include Eagle, Asset Control, GoldenSource, Cadis and AIM Software.
While not commenting on Netik’s new management, Paul Rowady, senior analyst with New York-based research firm Tabb Group, also predicts that the proliferation of quantitative trading methods and success of quantitative strategies will prompt greater interest in investing in large scale data management projects. That investment has historically been stymied by “trading personalities” which have typically focused on short-term projects.
“The rise of the quant represents the empowerment of a different personality profile in trading enterprises; one that is far more appreciative of the value of investments in achieving data superiority,” he wrote in a recent research note entitled: “On the Coattails of the Quants: the Rise of Data Management.”
This article can also be found at SecuritiesIndustry.com.
Register or login for access to this item and much more
All Information Management content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access