IEX, the buyside U.S. equities trading venue, has deployed Verdande Technologys VTEdge platform for operational surveillance of trading activity.
IEX will use Verdande Analytics as an early warning system across critical trading platforms to predict and prevent infrastructure glitches related to switches, routers, and network links as well as surveil orders, fill data, and market data.
Verdande Technologys kit is based on case-based reasoning (CBR) technology, which uses predictive analysis of potentially business and market impacting events. It will look for potential outages before they happen, for example, so that IEX and its clients make better decisions in real time and with evidence.
IEX is a new buyside trading venue that built a dark pool specifically for the sellside. Traders profiled the team behind the new trading venue in our October issue.
[How does Verdande’s CBR work? Traders spoke with David Lauer, its arichitecture technology consultant.]
Given the complexity in todays systems, we need to know how to recover from system failures. Verdande has brought to market a disruptive idea that has never truly been executed well: signal processing via Complex Event Processing (CEP) to understand patterns and deviations from the norm. said Zoran Perkov, head of technology operations at IEX.
He continued: Cause and effect is no longer a simple linear equation. Verdande allows for a proactive, real time analytics approach that can help inform a human of what possible decisions they can make to reduce the length of an outage. Our market is designed to protect the investor, and Verdande is an integral part of our technology toolkit.
CBR is about being able to use truly predictive technology to prevent or mitigate business impacting events; whether that means monetary loss or reputational exposure. In the financial services industry, that can be a challenge, as there are so many versions of normal and data is transmitted at such high speeds that it can be difficult to predict a failure with enough time to get ahead of the problem, said Joanne Kinsella, CEO, Verdande Technology Financial Services.
