Part two of our notes from the Forex Network London 2019 panel "The Challenges of Analysing Data", with John Ashworth (Caplin), Hasan Amjad (Cantab) and Andrew Ralich (oneZero).
More key takeaways:
- The practical side of data analysis (it's not just about alpha) - P&L’s recent In the FICC of It Special discussed how banks are moving to a horizontal client management model - using data analysis to manage cross product relationships and improve client service, which can immediately impact the bottom line. For example, data helps those banks still using paper systems to remind them of a client’s 3 month roll or to simply review price tiering.
- You can’t democratise common sense - new PhDs are certainly smart but don’t necessarily know the FX market. Many are unable to spot something that simply “doesn’t look right”. Common sense (or market sense) is needed.
- Aggregators and data producers have increased power - that's why exchanges are buying trading venues. But banks still hold power, as they own the credit relationships with clients.
- Buzz words - there's a lot of noise around AI and machine learning, but the main focus should be on capturing and analysing data.