Securities Industry News
March 17, 2008
By Katherine Heires

(An Excerpt)
Data quality monitoring, fraud detection for block-trading venues, and real-time risk management are a few of the ever-growing number of applications that Wall Street is finding for complex event processing (CEP) technology. Coral8 executives cite such uses as a key reason for an upgrade to its CEP engine.

Generally available as of last week, the new engine--version 5.2--includes external query capabilities and enhancements to its pattern-matching and security features.

"The first applications of complex event processing by Wall Street firms had to do with algorithmic trading," explained Mark Tsimelzon, president, founder and CTO of Mountain View, Calif.-based Coral8. "But more and more, we find that our customers are using it for other applications such as risk monitoring or fraud detection"--areas in which access to real-time data is critical.

"Increasingly, you will start to find CEP usage creep beyond front-office activities," said [Adam] Honore, [Aite Group Senior Analyst]. "We are encouraging people to experiment more broadly with this technology and try to think outside the box." He noted that Aite Group estimates that event processing technology spending will rise from $50 million in 2006 to $990 million in 2010, with financial services firms fueling a significant portion of that growth.

The full article is available to Securities Industry News subscribers at http://www.securitiesindustry.com/issues/19_53/22151-1.html