Adam Honoré, the founder and CEO of MarketsTech, is fond of making predictions and then seeing how many of them have come true. Back in 2015, he made some predictions about tech trends in the markets. With some he was right on; others less so. But, he said, when he predicts something he hopes will happen, he tries to make it happen.
Speaking at Barchart’s FinTech Exchange Chicago conference in April, Honoré said one prediction that he did “fairly well” on was that 100 percent of research and alpha discovery would be done from the cloud. And despite the fact that no exchange has yet made trading from the cloud available, Honoré said he thinks the industry is on track for exchange technology to be fully functional in the cloud soon.
But he was wrong about market data becoming variably priced. “I thought we’d be able to rent market data out,” he said. Now he doesn’t think that will happen even by next year.
He was correct that companies outside the exchange and finance industry will be the new market data providers – that’s the direction the industry is going, he said. But he had an “epic fail” on the prediction that latency would become a historic market structure discussion.
“I know the press is saying that [latency] doesn’t matter anymore, but that’s total fiction,” he said. “It is still absolutely relevant.”
Last year, the CME Group sold their data center in Aurora to CyrusOne. But it wasn’t just a real estate deal, Honoré said. MarketsTech is working with CME Group and CyrusOne to build a financial ecosystem on the Aurora Campus – a virtual community to bring together sets of data and lower barriers to discovery.
“We are trying to create a space for people to be able to move any workload they want, wipe out their telco [costs] and wipe out their constraints to adoption,” he said.
For 2017 Honoré predicts that global software-defined networks (SDNs) will come into the financial space. They are not yet focused on financial services today, but they could enable connecting to the cloud for much less than it costs now.
Optimistically, he believes regulators will become more enthusiastic evangelists for the cloud.
“If the CFTC says, ‘We like the cloud, we want you to store your data in the cloud,’ that will make life a lot easier,” he said.