Glue42 and Deephaven partner to manage pre-trade risk at 'top 10' hedge fund
Glue42, the company that delivers integrated desktop experiences to financial institutions globally, and Deephaven Data Labs, a start-up that provides capital markets participants with a next-generation data platform, are collaborating to reveal actionable insights from massive datasets.
Initial use cases include more effective management of pre-trade risk and regulatory compliance for users across trading, risk and compliance desks.
The partnership follows a pilot at a top 10 investment management firm who, with the help of both vendors, is building a unified portfolio management platform for all of its applications. The hedge fund's primary objective is to help users better manage critical datasets and simplify their trading workflows to reduce operational errors. Next in line is a common look and feel of all applications as well as access to a centralised app store.
While Deephaven enables front, middle and back-office users across the firm to rapidly build analyses, models, reports and dashboards across huge quantities of real-time, historical and alternative data sources, Glue42 is enabling their user interfaces to communicate with each other as well as other external systems, to create intuitive and simplified user experiences, even within a single screen if desired.
As a direct result, during the pilot portfolio managers were able to outperform the market. More so, they significantly reduced pre-trade risk as they no longer had to constantly switch between various applications and disparate datasets to complete regulatory and compliance checks.
"Excelling in high volume and high volatility trading sessions is the difference between outperforming and underperforming funds," says James Wooster, COO, Glue42. "This partnership equips our client's portfolio managers to operate at peak performance when it matters most. The combination of deep insight and a responsive user experience creates an industry advantage for our clients that other firms have not been able to match."
He continued, "The exciting aspect about our joint capability is its intuitive nature. There is no learning curve or knowledge ramp for traders as the environment instinctively reacts to the way they work."
Portfolio management is just the beginning. The partnership applies to any scenario across the financial market that would benefit from new insights and efficiency.
Enterprises are constrained by data locked away in their legacy systems that could generate more value and profit. Glue42 offers firms the opportunity to unlock the power and value of this data and create user-friendly hubs connecting various technologies. Providers like Deephaven can be part of a bigger infrastructure which services much larger and diverse teams with user experiences that require less mental maintenance and fewer clicks.
In this instance, the partnership between Deephaven and Glue42 also shares a similar vision of making high-value technology widely adopted and easily accessible by their open-source offerings. In addition to the current integration of both vendor's enterprise editions, Deephaven Community Core, Deephaven's opensource version, will be making its debut in the near future.
"We are preparing for open-sourcing the data interrogation piece of our solution in the next six months," says Pete Goddard, CEO, Deephaven. "Combining this open capability with Glue42's open-source web integration platform, Glue42 Core, will allow developers to integrate web applications seamlessly. In fact, we will be able to containerize our open-source solutions with Glue42 and it will just work."
As the partnership evolves, more use-cases are being developed such as extending order management workflows to include pre-trade analytics that provide traders with the execution insights they require.