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hedge funds markets

Observability helps hedge funds monitor trade workflow

Volatile markets require constant attention, something hedge funds are well aware of. Even a few seconds of system downtime during the trading day can result in missed opportunities costing them millions.

So, hedge funds must be able to understand and manage the unknown and unusual events and risks presented by a bumpy macroeconomic environment. This means they need end-to-end real-time visibility of the entire trade flow, ideally with a single, integrated platform.

That is because real-time visibility of the entire trade flow can improve performance, address any infrastructure weakness, and reduce Mean Time to Resolution (MTTR). In other words, monitoring instrumentation of applications and dependencies within an actual trade environment can help bring your bottom line into the black as opposed to opportunities slipping through your fingers due to downtime.

Riding out the storm

Of course, proactive monitoring alone cannot guarantee satisfactory returns in the market. There are several macroeconomic factors for hedge funds to consider — inflation, higher costs for energy and consumer commodities to name a few.

On top of that, trading takes place in seconds or milliseconds. A system failure of even the shortest duration can result in lost revenue and unrealized deals simply by not being able to act at the right time. Any avoidable incidents that impact your trade workflow can impact revenue and investor confidence in your fund’s ability to generate a positive return on investment.

So how do you guarantee your monitoring systems are performing at an optimal level to give the best possible chance of generating positive returns?

Add observability to traditional monitoring

Hedge funds that rely on traditional monitoring to identify known issues and risks will likely fall behind the competition. Why? IT environments today are becoming more sophisticated as time progresses. And hedge fund technology is often bespoke, requiring similarly customized management tools to provide optimal effectiveness.

End-to-end visibility gleaned from a scalable, customizable observability platform offers the necessary tools and data required for successful outcomes in dynamic environments, such as the ones that hedge funds operate within.

True observability

This is the true power of observability, beyond the technological aspects of system uptime, MTTR, and infrastructure health. Deep understanding of your entire IT ecosystem can have a significant impact on business key performance indicators (KPIs) such as revenue growth, profit margins and customer satisfaction rates.

By adding context to your monitoring data, you get around-the-corner observability, helping you to understand your IT business environment - so you can spend more time acting now and planning for tomorrow. Peeling apart layers of non-business-critical metrics to reach gem-quality core data over time will enable IT business stakeholders to predict trends about current and future customer behavior, both vital for running digital systems and key to the success of an online commercial venture.

IT systems performance and reliability is of significant and growing importance to today’s investors. But technology alone can’t solve every problem any more than macroeconomic storms current and future be tamed. Therefore, it’s essential that financial firms, like hedge funds, have the solutions in place to ensure they are always on - no matter what is happening in the world around them.

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