Complex Event Processing (CEP) & Twitter

Event-driven architecture and complex event processing are defined by Wikiepedia as:

Complex event processing  (CEP) consists of processing many events happening across all the layers of an organization, identifying the most meaningful events within the event cloud, analyzing their impact, and taking subsequent action in real time

Wall St & Technology magazine state:

Users of StreamBase's Twitter adapter can combine Twitter with market data and build data management applications, says StreamBase CTO Richard Tibbetts. In particular, Twitter can be used as a crowd sourcing tool to help gauge people's sentiment towards a particular event or stock. "It's really useful for sentiment analysis, which traders can then use to help them make trading decisions," he adds.

 Streambase blog states:

 Trading on rumor is a time-honored trading technique.   “Buy on rumor; sell on news” is one of the oldest mantras on Wall Street and Main Street alike.  Any tool that improves the speed or quality of transmitting information is of interest to traders.  Twitter does that.   But be careful what you ask for – lots of the tweets on Twitter are garbage – scam artists and manipulators. 

The major issue slowing down advances in risk management and trading systems is data access and data quality. It seems that these articles are two years old. That's an eternity in the computer industry.  I will have to do more research into this area. But regulation and privacy are still hindering widespread adoption of social media in the capital markets, according to a new report from Aite Group.

Sybase(SAP), Oracle, IBM, Progress Software & Microsoft all have come out with their own  new generation of software, shifting the focus from stored persistent data to events processing. In fact there is a on-going consolidation sweeping through this sector.

 Seeking Alpha explains:

These are some of the publicly traded companies that venture into this realm: CSCO, EMC, IBM, PEGA, PRGS, SAP, TIBX  Given ongoing consolidation, that leaves Active Endpoints, Pegasystems (PEGA), Appian, plus several open source niche pure plays still standing.

But don't consider this a complete list. In my readings, I found Thomson Reuters & StreamBase and I may have missed many more. Do some exploring. Good Hunting!


Related Blogs:
http://mashable.com/2011/05/17/twitter-based-hedge-fund/
http://arxiv.org/PS_cache/arxiv/pdf/1010/1010.3003v1.pdf
http://streambase.typepad.com/streambase_stream_process/2011/05/on-big-data-real-time-computing-and-twitter.html