Beacon Standard

Beacon Standard extends Beacon Core with a broad suite of reference financial analytics for modeling most modern financial markets and the products that trade in those markets, including trade life cycle events, risk and PnL reports. These analytics are contained within the modules b-Markets and b-Trades. Beacon Standard is the recommended option for financial institutions or trading organizations with in- house developer teams who want to quickly build proprietary trading and enterprise risk analytics in Beacon.

The b-Trades module includes logic and applications for:

  1. Visualizing & analyzing data in plot tool
  2. Backtesting tools
  3. Pricing and structuring tools
  4. Risk & PnL reports
  5. Curve marking tools

The Beacon Financial Object Hierarchy enables plug-and-play use of data and functionality. Any data or functionality that follows the APIs defined within the Beacon Financial Object hierarchy is immediately available for use with these applications, regardless of whether such data or functionality has been created by Beacon or by the client.

The following diagram provides an overview of the Beacon Financial Object Hierarchy, and it shows the scope of b-Markets (included with Beacon Base) vs b-Trades (included with Beacon Standard).

Market Data Management in Beacon

Beacon provides implemenations for standard market conventions and supports workflows from individual research projects all the way upto global trading desks with multiple regional closes.

"Data" includes:

  • External market data (e.g. settlement prices) and internal market data (e.g., shaped forward curves)
  • Contractual data (e.g. trades fed from internal or external systems)
  • Fundamental data (e.g., weather data)

In the absence of Beacon:

  • These functions are typically spread across multiple systems and ad-hoc tools
  • Functionality and data is being duplicated across the organization
  • Accountability for data management functions is fragmented and not transparent
  • Using data (e.g. for commercial analytics or enterprise risk management) is difficult since raw data and reference data are hard to find and not sufficiently standardized and analytics are not consistent across functions

Beacon combines all of the above functions in one well-defined tool set and data warehouse, enabling a lean and transparent organization of data management functions, ensuring data quality, consistency and facilitating plug-and-play use of data.

All market data is stored as time series in Beacon, and each time series incorporates our bi-temporal data model, i.e.:

  • Two times associated with each piece of data:
  • As-of time: date/time a piece of data corresponds to (eg a closing date)
  • Entry time: date/time when a piece of data was changed
  • Time series and reference data
  • Roll back changes easily
  • See state as of an earlier time easily
  • Quantify impact of data changes (eg on risk/PnL)
  • Enables data security and quality control