Open-Sourcing a Snowflake Financial Services Asset Management System: 3 Billion Trades with Real-Time Cash & PnL
What would an Asset Manager’s Single Version of the Truth (SVOT) on Snowflake look like?
You can build it yourself with this open-source, step-by-step tutorial: Quickstart on Financial Services Asset Management.
There’s also this Snowflake Developers Youtube where we demo the system and dashboards and build it from scratch.
How can you calculate all of your Trades, Cash, Positions, and Profit & Loss (PnL) on one platform?
You would store all of your trades in a trade table marking the buy, sell, and hold action. You can decide the granularity down to the day, hour, second, millisecond or even nanosecond. Then use a view with window functions to calculate the cash used and Profit and Loss (PnL). This has the advantage of giving you real-time cash and PnL which has the further benefit of being able to recalculate historical changes instantly.
In our demo, we compress, optimize, encrypt, and govern 3 billion stock market trades at a day-level-granularity into the trade table. We then use a position view with window functions to calculate the cash and PnL.
How will your firm handle the next Global Financial Crisis?
When the Global Financial Crisis of 2008 crisis slammed into the markets, money managers were caught unprepared, and this almost led to financial Armageddon. Many globally recognized banks even went out of the business and central banks around the world had to unite to save the financial system and bail out numerous banks.
There were many Asset Managers who couldn’t tell in real-time what their trades, cash, and PnL were across all of their assets and liabilities because that data was all in different physical data silos. This data had to be copied , transformed, and reconciled into numerous other systems to finally give reports often days later. This required an army of stressed-out experts on different systems to work late into the nights and weekends and ultimately give numbers that were already stale.
When these numbers were finally reported, they were often wrong and there were often many numbers and systems that continued to disagree so these computer systems unfortunately could not meet the demands of the business.
With the system we show here, you’ll have that real-time cash and PnL you need to make decisions to quickly hedge and limit your exposures to toxic assets. All of your staff can connect to the same Snowflake instance at the same time.
What should I do next?
Build the Quickstart. If you don’t have Snowflake, sign-up for a free Snowflake Trial.
