Market Participants Focus on Data

TMX Group managing director Doug Clark stated the SEC had many proposals for holding disclosures, swap disclosures, quick sale disclosures and sooner and extra frequent transparency on holdings.

Speaking on the Wall Street Horizon webinar “Data Minds: Navigating 2023’s Bear Traps Using Data-Driven Signals,” he stated it might be a chance for buying and selling desks to grasp the circulation by way of the market.

“This is a little bit of a problem for asset managers seeking to accumulate or exit massive positions over the course of days or even weeks as details about intense buying and selling is starting to leak into the market. it will not,” he stated.

Virginie O’Shea, founder and CEO of Firebrand Research, added that the majority market individuals put market threat on the high of their threat listing, adopted by credit score and liquidity dangers.

We are all going to be challenged this yr, she stated, as latency is clearly a matter of buying and selling exercise and threat.

Peter Hafez, chief knowledge scientist at RavenPack, says it is necessary to have knowledge that may seize adjustments in market circumstances. Another key theme is the velocity of change, he added.

“Because we are dealing with geopolitical issues, it has become important to look at datasets that can provide the necessary coverage on a global scale,” he stated.

“And secondly, we are also looking at datasets that are fast and point to alternative data,” he added.

Hafez stated that once you begin totally different knowledge units, you get a extra correct and well timed learn of what is actually going on within the financial system.

“We cannot rely solely on traditional data sources and economic data releases,” he stated.

CP Capital founder Chris Petrescu, who beforehand labored at ExodusPoint and WorldQuant, says that when markets are risky, those that “make markets in these markets” do higher as a result of there are extra trades. stated to tend.

“So the trade income from these markets is not only very cleverly calculated, but also very profitable,” he stated.

Asha Mehta, managing companion and CIO of Global Delta Capital, added that there’s appreciable variability amongst managers. But his one of many widespread threads is those that had extra publicity to the theme of worth. was the winner final yr.

“Going into 2023, I actually see this as a extra energetic inventory picker market. improve.”

Corporate occasion knowledge is all the time necessary, Hafez added, however typically “we see the interpretation of company occasions altering,” he stated.

Meanwhile, Mehta emphasised the necessity for broader knowledge throughout the cap spectrum and market.