Kx Systems Embarks on Middle-Office Expansion

Many existing bank customers of kdb+ have implemented the database in their back or front office, with back office applications taking advantage of kdb+'s historical database capabilities, and front office applications focusing on real time, and using kdb+'s in-memory database and streaming capabilities, Sykes says. However, clients could also use kdb+ to perform other functions in other parts of their business that also processes huge amounts of data.

"We would hope that whichever case current clients have already deployed, some customers will be looking to re-use the investment they have already made in the technology by using it in other parts of their business. [Kdb+'s Q time-series query] language can be used as a single unifying glue to allow data from anywhere to be seamlessly melded together and turned into actionable business information," Sykes says.

With middle offices under increasing pressure from regulators, clients and the markets themselves, more and more business applications need to be able to access big data repositories as well as act against real-time events, such as real-time portfolio risk modelling, monitoring traders' behavior, and reacting instantly to regime-changing market events, Sykes says. "Generally these types of applications require historical databases, in-memory databases, and event stream processors. Kdb has all three technologies out of the box," he adds.

Since kdb+ has been widely used by global banks, Sykes says there are natural conduits for cross-selling within different departments. "Some of our largest customers have hundreds of kdb+ applications throughout their firm... It is a perfect fit for situations that require real-time analysis and involve massive, historical datasets."

Kx will also leverage the salesforce of its majority shareholder Northern Ireland-based data technology provider First Derivatives and their suite of kdb+ powered products to target the middle office.

Sykes says he expects the potential return on investment of kdb+ to offset the increased spend required from any firm looking to roll out the database into new areas, such as the middle office. "Saving money is a big deal in any department. It's more a case of "If you're going to spend, spend in the right place." The vast majority of people who are currently looking at kdb+ have invested in alternative systems elsewhere and discovered that these are not meeting expectations, he adds.

Academic Applications

In addition to expanding kbd+ uptake within capital markets organizations, Sykes has also been tasked with expanding kdb+ into markets outside of finance, and is focusing on deploying the kdb+ database into academic institutions.

The City University of New York's Baruch College is expanding its use of kdb+ this year, while the UC Berkeley's Haas School, the Massachusetts Institute of Technology, and UK-based Loughborough University are all leveraging the technology in classes and for research. Kx is now reaching out to universities in Europe, and is seeking to expand the presence of kdb+ in universities elsewhere in the world in partnership with First Derivatives over the coming year.