The client:
A global systematic hedge fund
Pain points:
As inflationary pressures increased across all global markets, investors started to look at historical data, specifically inflation and interest rate data, to build a picture of how the markets behaved in the past and what the factors were that impacted them. This was all in a bid to better understand the current landscape.
Client’s goal:
Our client was already using back testing as a key input into their investment strategy. However, due to the sustained period of low interest rates and inflation, they had been gathering this data nor monitoring it in this way, which left them with a gap they needed to plug as quickly as possible. The quantitative research team were looking for the most comprehensive historical inflation swap and option data they could access to quickly understand their risk and where there was market opportunity other's may have missed.
The solution:
We have a large footprint in these specific markets as so much of the trade activity comes through our ICAP and Tullett Prebon venues. In addition to this breadth and depth, we were already set up so that clients could access the data via Snowflake, this meant that the client in question, could use the data in their quantitative models instantly.
Drawing on more than 20 years of experience across key markets, our data is a rich source for back testing trading strategies, and understanding risk-levels associated with specific investments, as well as modelling and simulations. Our client was able to use our historical data for a richer understanding of market behaviour and trends giving them the confidence to act fast in a changing environment.
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