07.18.17 - Beyond the Buzz: Seven Real Reasons an "As a Service" Solution Adds Value

Today’s financial technology space is teeming with buzz words: “fintech”, “regtech”, “big data”, “cloud”, “data zoo”, “Anything-a-a-S”, “real-time”, “low latency”, and the list goes on. As we launch our Hanweck blog, we want to unpack how our “real-time risk analytics as a service” offering (multiple buzz words in one phrase!) delivers tangible, lasting value that is deeper than just the catchy terminology it is wrapped in. Here are our Seven Real Reasons that firms across the financial services ecosystem engaged in derivatives trading and risk management should consider Hanweck for their analytics as a service solution:


7. We Aren’t Selling Bags of Gold but Are Setting a Gold Standard for Risk Analytics

Inputs to risk models and certain risk management techniques are consistent across firms engaged in trading options and options on futures. In the past, there was no available external source to calculate and maintain high quality implied volatilities and Greeks, scenario analysis or margin analytics. Now that these analytics are available as a service from Hanweck, let us be your gold standard foundation so that your in-house quant team can be redeployed where it matters most for your core business.


6. Avoid Garbage In, Avoid Garbage Out

Hanweck’s dedicated data experts have comprehensive knowledge of the global derivatives markets and create the unified reference data foundation needed to power a high-quality, integrated analytic product. We have a team of analysts that maintain the highest quality reference and corporate action data. This is a resource-intensive process but one that allows us to minimize the Garbage-In, Garbage Out problem.


5.  Second (And Third, Fourth, Fifth, Etc.) Set of Eyes

Our broad customer base - buy-side, sell-side, prop trading firms, clearinghouses, OMS/EMS vendors – are looking at our data all day, every day. Maintaining high quality analytic data is very difficult to do, and we think our analytics are the best you will find. That doesn’t mean, however, that they are infallible. And if there is an issue – a volatility number seems out of line, an upcoming dividend hasn’t been accounted for – the sheer number of eyes on our data provides a sanity check that benefits all of our customers. This network effect improves the quality of our data and results in even more robust inputs for your models.


4. Plug and Play

A truly "data-enabled" as-a-service approach to analytics means that all real-time price feeds and reference data are sourced by Hanweck. Once the data is cleaned and unified, we are able to deliver a complete analytical platform with the simplicity of a single data feed. Contrast this with the significant hardware footprint that would be required to consume large-scale, high-velocity market data internally.


3.  Third Party Seal of Approval

As a recognized and trusted leader in the industry, Hanweck offers an independent, third-party source for risk analytics that supports internal risk controls and reporting. Given the evolving regulatory environment for financial services firms, having independent inputs to risk models can offer significant benefits in model vetting and validation.


2. One Size Doesn’t Always Fit All

If the first 5 reasons didn’t convince you, let’s go a bit deeper into the specifics of Hanweck Options Analytics. Even though our implied volatilities and Greeks are the gold standard, our offering can be extensively configured – models, inputs, assumptions – to meet customers’ specific quantitative approaches. This enables you to benefit from relying on a third-party to do the heavy lifting with respect to quant models, reference data management, and technology infrastructure while you can tweak the data for your specific instance.   


1.  Plow Your Own Fields or Shop at Whole Foods?

Our “as-a-service” model dramatically lowers the cost to support real-time, high-quality risk analytics by reducing time to delivery, simplifying integration, and allowing you to redirect internal resources to higher impact efforts. Why expend the resources to plant, grow and continually fight off weeds in your own fields when you can shop for the highest quality ingredients at Whole Foods? Use Hanweck’s analytic data to bake into your applications, risk dashboards, and models.


Why not shop for the highest quality ingredients?


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