Insights

Every once in a while there comes a new idea, or a repackaged old one, in sync with a few coincidences in the environment. A change in regulation, adoption of new technology and a nudge, and things change. The resulting ‘snowball effect’ is the adoption of general-purpose programming languages (GPPLs) in finance. This paper talks about this current trend, the factors driving it, and the reactions of the firms affected.

Key Takeaways

Why the trend – factors pushing adoption of GPPLs and why the current methods of data analysis have reached their limits
The environment – changes in business models due to regulation, explosive growth of data, the
changing nature of the data to be analyzed (sentiment and images), and asset managers demanding more ‘bespoke’ research
The power of GPPLs – analyzing data and automating tasks enable an analyst to leverage ‘economies
of scale’ in analyzing alternative data
What firms are doing – alleviating employees’ fears of becoming digitally illiterate, through mandatory
coding sessions, using GPPLs to offer more tailored insights


Author

Devin Kandage

Senior Associate, Specialised Solutions

Devin Kandage is a senior associate within the Specialised Solutions team at Acuity Knowledge Partners. He has over three years of experience in quantitative research, working with a diverse group of clients, spearheading process automation, supporting a benchmark index provider by conducting research on emerging market bond liquidity, supporting investment research through investment and technical analyses in addition to several other ad-hoc projects that include data cleaning, web scraping and training incoming quants analysts. He has a first class degree in Economics and Finance from the University of London. He is also a CFA level III candidate.

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