Technology for Financial Markets

There have been three great waves of technological change which have impacted financial markets:

  • call your broker
  • direct market access
  • algorithmic trading

Each disrupted the prior status quo and emerged as the new trading paradigm. The next great wave is upon us:

  • predictive analytics

Those who will embrace it successfully will prosper at the expense of those which do not.

Predictive analytics is a technology combining findings from the fields of statistics, data mining and machine learning. Its strength lies in processing massive amounts of data - to gain the extra insight for deriving the best plan of action. This is especially significant in today's information rich world of finance.

How does it work?