Z Company, a giant in the oil trading sector, covers international trades in crude oil, refined products, and other commodities. The company also cleverly uses futures and other financial derivatives for hedging, effectively managing market risks. However, in terms of risk data management, Z Company faces complex cross-industry challenges.
On one hand, the trading processes are cumbersome, involving a variety of data types. On the other hand, the financial markets are highly volatile, with data being updated at an extremely fast rate. How to effectively combine trading and financial derivatives data and extract precise risk control data. This is essential for timely mitigating market risks.This is also a major challenge in Z Company’s data management and analysis.
Z Company’s Cross-Industry Data Management Pain Points
Specifically, Z Company faces the following pain points in unified management of trading and financial data:
- Multiple data sources: Over 70 sources, spanning more than ten systems and dozens of manual spreadsheets, making data retrieval exceptionally difficult.
- Diverse data formats: Manual processing work is enormous.
- Data quality issues: Accuracy, completeness, and consistency are difficult to guarantee, often requiring a lot of time for verification.
- Large data volume: 20 million lines of data are generated daily, with the current systems unable to handle large-scale data processing, resulting in significant delays.
- Varied data types: Physical and futures data are intertwined and scattered across departments, complicating data analysis.
These pain points lead to the following issues for Z Company:
- Time-consuming data processing: From integration, calculation, and report generation to visualization, a large amount of manual input is required, with long cycles and low quality, squeezing the time for data analysis and increasing analysis difficulty.
- Insufficient real-time data: The trading industry requires daily market monitoring with high real-time data demands. However, the current report generation speed cannot meet daily reporting requirements, affecting timely decision-making.
- Low data analysis utilization: The complexity of trading and financial data, coupled with a shortage of specialized talent and lack of advanced data analysis systems, makes it difficult to conduct in-depth, personalized data analysis. As a result, data value remains underutilized, unable to empower decision-making.
- Data security and compliance issues: Data silos are significant, with many barriers and poor transparency. There are risks of leakage, and tracking is difficult, which impacts data security and compliance management.
These problems lead to low data management efficiency, high costs, low data utilization, and insufficient decision-making value, which hinder business innovation and growth. More importantly, the failure to effectively integrate trading and financial data impacts risk data analysis and decision-making, making efficient risk management hard to achieve.
X-Ray’s Cross-Industry Data Management Solution
In response to the challenges faced by Z Company and similar trading enterprises in cross-industry data management and analysis, the X-Ray data governance and analysis platform offers a high-quality solution. It efficiently integrates trading and financial data to meet the need for high-frequency data updates and in-depth analysis.
With extensive experience in the trading industry and technical practice, X-Ray has accumulated the following core advantages:
- Seamless multi-source data integration: The XDK data collection toolkit can seamlessly integrate multi-source heterogeneous data, including backend databases, data warehouses, web interfaces, text files, and Excel spreadsheets. It provides various data import methods and achieves non-intrusive data integration, improving efficiency.
- Real-time and batch data processing: X-Ray offers distributed storage, high-performance storage, and parallel computing solutions, meeting both large-scale data storage and high-frequency, real-time data processing needs.
- Highly automated data governance: X-Ray automates the entire data processing chain, including data import, cleaning, verification, calculation, reporting, and visualization, significantly enhancing processing and analysis efficiency.
- Flexible data analysis platform: X-Ray provides flexible customization options, such as the X-BT backtest framework supporting personalized advanced model development, the X-Sheet data reporting tool supporting custom data analysis, and the X-Insight visualization tool supporting customizable chart displays, meeting the need for in-depth, flexible data analysis.
- High security and compliance: X-Ray provides a complete data security protection mechanism and transparent data display features, including user access control, system operation logs, account password management, and multi-level data visibility, ensuring secure use and compliance auditing.
These advantages effectively address the data governance, analysis, security, and compliance challenges faced by cross-industry companies, perfectly matching the pain points of Z Company’s inefficient data management, low utilization, and complex management. After extensive comparison, Z Company chose X-Ray as the core risk control data governance and analysis system to improve data decision quality and enhance risk management efficiency.
X-Ray’s Successful Implementation and Results at Z Company
Based on Z Company’s specific needs, X-Ray developed a targeted implementation plan, achieving significant results.
Multi-Source Data Integration
Solution: Use XDK to integrate 70 data sources through system integration and manual uploads, and standardize the data. A verification mechanism ensures data accuracy, completeness, and consistency.
Result: With X-Ray’s data input module, users can view data import records, and the trade management module can view integrated physical and futures transaction data. Compared to manual integration, the XDK integration saved 3-4 hours.
Large-Scale, Real-Time Data Processing
Solution: For storage, use distributed storage, suitable for large-scale data, with high scalability, increasing data availability and fault tolerance. High-performance storage improves single-point storage performance and data read/write speed to meet real-time requirements. For computation, parallel computing using multi-core processors, GPUs, and distributed computing frameworks boosts processing speed.
Result: After data import, the X-BT backtest framework in the computation center can calculate standard business reports in real-time. Compared to manual calculations, X-BT saved 2-3 hours in data processing and calculation time.
Automated Data Processing
Solution: Automate the data processing flow, including data import, standardization, verification through XDK; implement automated, real-time computation through X-BT; and automatically generate customized business reports with built-in data visualization features.
Result: Essentially replacing the entire manual data processing workflow, saving 1-3 days in report production time. Users can directly use real-time data from X-Ray’s business report module for data analysis and make timely risk decisions.
Personalized Advanced Data Analysis
Solution: X-Ray’s data analysis platform meets the multi-level analysis needs of Z Company, including personalized and advanced analysis. It also supports customization to accommodate flexible business changes.
- For Regular Users: X-BT provides small formulas for personalized calculations. X-Sheet offers an Excel-like experience for one-click generation of personalized reports. X-Insight offers simple operations for personalized visual analysis.
- For Professional Users: X-BT provides an efficient model development environment and Python programming capabilities. Professionals can use AI technologies to perform advanced data analysis, such as writing Var indicators to measure maximum potential market risks.
- Flexible Customization: X-BT supports custom-written indicators and small formulas. X-Sheet’s data extraction logic can be customized using indicators, and X-Insight offers customizable data visualizations for flexibility.
Result: In addition to built-in industry indicators, users employed X-BT to meet complex, personalized analysis needs, such as using quantitative models to predict crude oil prices for trading and risk decisions. The analysis efficiency improved by more than 30%.
Data Security and Compliance Management
Solution: For data security, stringent account password validation is used during login. The user permission module supports strict authorization management. The system operation logs help identify potential security risks. For data compliance, the system provides multi-level data visibility to track source data, improving transparency for compliance review and management.
Result: The data security mechanisms fully safeguard business data, increasing data security by 35%. It is now easier for risk control, management, and compliance personnel to access data, improving problem-solving efficiency and compliance management. Compliance management efficiency increased by 40%.
Through the implementation of these solutions, Z Company’s trading and financial data was fully integrated, business response efficiency improved, and manual labor costs in data management were reduced. The breadth and depth of data applications significantly increased, improving the quality of risk control decisions and management. Data security and compliance management complexities were lowered, facilitating better enterprise governance.
Conclusion: Verification of X-Ray’s Effectiveness and Future Outlook
In conclusion, Z Company’s successful implementation results validate the effectiveness of the X-Ray cross-industry data management solution. Subsequently, we have implemented X-Ray in several other trading enterprises, and the positive feedback continues to affirm the feasibility of X-Ray’s solution in the trading industry.
In the future, we will continue to explore more application scenarios and fully tap into the potential of X-Ray’s data governance and analysis capabilities. We aim to provide more comprehensive data management services for cross-industry enterprises, enhance data’s commercial value, and help businesses soar with the power of data!
If your company faces cross-industry data management challenges, feel free to contact us for a tailored solution.
