Aite Group Roundtable Predicts Greater Penetration of Event Processing in the Capital Markets

Boston, MA, May 30, 2007 – On May 9, 2007, Aite Group hosted a roundtable discussion on the practical application of event processing (EP) in the capital markets. Panelists agreed that event processing will experience broader acceptance in the capital markets space in years to come. In recent years, EP has proven to be a key, emerging computer logic that is playing an increasingly important role in the capital markets, as these markets grapple with the challenges of creating more intelligent technology as they handle exploding volumes of data. Aite Group estimates that EP revenues will reach approximately US$460 million by 2010 - over four times the estimate for 2007.

The event assembled a panel of leading vendors of EP technology, along with a hedge fund committed to utilizing EP to generate alpha. Panelists, including Dr. John Bates, founder and vice president of Progress Apama, Don DeLoach, president and CEO of Aleri, Bill Hobbib, vice president of marketing for Streambase, Jeffrey Hudson, CEO of Vhayu, and Eric Weinstein, PhD, director of quantitative analysis at Natron Group, were led by Brad Bailey, a senior analyst with Aite Group, who addressed an audience of nearly 100 people. Among the key findings were:

• EP will play an increasingly significant role in the capital markets.
• EP, as a new modality of computing, is solving challenges in the capital markets where extreme volumes of data are overwhelming traditional technologies.
• EP has made significant headway in the algorithmic trading of equities and is expanding to other asset classes.
• EP solutions are finding their way into liquid electronic markets, including FX, futures, and certain parts of the fixed-income market.
• In less liquid markets (including fixed-income), EP solutions are also beginning to become relevant.
• While different vendors are proposing different standards for the use of EP, the market will ultimately drive EP standards as it becomes more widely embraced.
• The broadest term for the space is event processing, which includes both complex event processing (CEP) and event stream processing (ESP).
• Many complex trading relationships and trading-related problems can be spotted with greater efficiency in an EP environment.
• The evolution of compliance and surveillance from a batch environment (once a day, once an hour, etc.) to a real-time environment is driving solutions for EP.
• Complexities around data capture and retention that were created by Reg NMS and MiFID have led to opportunities for EP solutions.
• EP vendors must allow a framework for integrating buy-side and sell-side customers' custom and proprietary analytics into their platforms.
• EP is allowing firms to capture alpha through the analysis of great amounts of data and by focusing in on opportunities that otherwise might have been overlooked.

In February 2007, Aite Group published a research report entitled Confusion about Event Processing (CEP): An Overview of EP in the Capital Markets, which examined the evolution of EP and its expected and increasingly important role in the capital markets.

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