Big Data in Capital Markets: Expanding the Search for Big Ideas

by Bill Fearnley, Jr, January 24, 2013
Industry Trends
North America


Capital markets firms process, consume, and produce massive amounts of digital data every day. Firms are always searching for new data to provide insights in the search for investment alpha and competitive differentiation. Big Data tools and technology can help firms capture, analyze, and visualize this data and glean new investment ideas.

In the report Big Data in Capital Markets: Expanding the Search for Big Ideas, Celent assesses the Big Data opportunity for hedge funds, broker-dealers, asset managers, and custodians. The report also provides insights as to how Big Data can help front, middle, and back office operations.

Celent believes there are four key drivers of Big Data in capital markets:

  • A drive to improve insights and statistical confidence.
  • A wealth of unstructured data and data that can’t be analyzed by traditional relational database systems.
  • Higher-speed / higher-volume analytics and visualizations to explain and explore.
  • Open source software and falling server and enterprise storage costs.

“Capital markets is an industry with vast amounts of data that needs to be processed in real time, providing the perfect context for investing in Big Data,” says Bill Fearnley, Jr., Senior Analyst with Celent’s Securities & Investments Group and author of the report. “Firms compete for information as they develop proprietary investment ideas and strategies, and they should embrace Big Data in order to gain new insights.”

This report examines the key steps involved in Big Data and provides an overview of Big Data technologies that can be used in capital markets. It then discusses how hedge funds, broker-dealers, asset managers, and custodians are using Big Data across their operations in the front, middle, and back office. The report also provides conclusions and recommendations for financial institutions and vendors.

This 25-page report contains five figures and eight tables.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
Tel: +1 212 345 1366

Europe (London)
Chris Williams
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary




Three Key Steps


Demand Drivers for Investment


Multiple Types of Firms Are Investing
in Big Data


Front Office


Middle Office


Back Office


Conclusions and Recommendations



For Financial Institutions



For Vendors


Leveraging Celent’s Expertise



Support for Financial Institutions



Support for Vendors


Related Celent Research


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