On the afternoon of April 1st, the A+CLUB 2023 Thematic Summit was successfully held in Lujiazui, Shanghai. More than 100 people from nearly 80 industry-leading institutions attended the meeting, of which 70% were outstanding quantitative private equity managers in Shanghai.
The theme of this year's summit is "Keeping the Righteousness and Innovation, Gathering Forces to Move Forward—Helping the High-Quality Development of the Quantitative Industry". Regulatory agencies, securities companies, industry experts, tripartite organizations, and suppliers of advanced solutions (including computing power, algorithms, data storage, and software) gathered together to conduct an open and in-depth discussion on the technology, ecology, trends, and future of the quantification industry. And sincere exploration and communication.
Development Status and Trends of Domestic Quantitative Trading
Wang Zhaoyu, Chief Quantitative Strategy, CITIC Securities Research Institute
The quantitative industry is moving from alternative to mainstream. By the end of 2022, the management scale of quantitative private equity has reached 1.5 trillion, and the transaction volume of quantitative strategies accounts for about 20%. Looking back at the past three years, compared with the annual performance of subjective bulls, quantitative strategies have relative advantages , among which index-enhanced and market-neutral strategies have become the two largest-scale strategies in the industry. In the face of the phenomenon that the source of factor income is converging and intraday high frequency has become a new source of alpha income, how can the traditional medium and low frequency survive? Mr. Wang said: "In the future, the three items [quantitative middle office, strategy development and instrumentalized products] will be the key to the competition of domestic quantitative private equity."
2022 China Quantitative Investment White Paper Release and Data Interpretation
Kuanbang Technology Operation Director Chen Xu
The 2022 China Quantitative Investment White Paper Organizing Committee surveyed many industry practitioners, recovered nearly 500 pieces of data, and outlined the quantitative world we are experiencing: ending the simultaneous decline of alpha and beta in three consecutive positives; frequency band; the controversy gradually fades away, and the degree of transparency and recognition increases. Mr. Chen also showed some key data conclusions from the survey: (1) Among the investment targets, Hong Kong stocks (18.97%) and emerging markets (8.05%) have reached an unexpected proportion. (2) Is overtime serious in the industry: Generally, 60% of practitioners think that the workload and difficulty are moderate. (3) About the future: [artificial intelligence, machine learning and high frequency] will be an important development direction in the future.
Focus on computing power innovation and build an efficient trading computing power infrastructure
Ding Yu, CTO of Super Fusion Computing Infrastructure
Quantitative trading has three computing power application scenarios: trading/marketing system, data platform system and strategy generation system. The trading/marketing system processes a large amount of market data and quickly processes transaction requests, which requires low-latency and highly reliable computing power support; the data platform system used to capture, clean, store, and retrieve massive big data requires storage capacity and performance. There are also certain requirements for expansion capabilities; the strategy generation system is based on various algorithms, and the intelligent strategy generation system with massive data as input needs to use GPU servers to support calculations to improve calculation efficiency and accuracy. In the current quantitative industry, many institutions have begun to increase investment in computing power infrastructure to prepare for future competition. Mr. Ding showed a full range of hyperfusion accelerated computing servers at the meeting, including full-rack GPU servers and mainstream GPU servers.
Future Competitive Road of Extreme Trading
He Lei, Head of Trading Products, Sinovel Technology
With the rapid growth of domestic quantitative institutions, domestic trading technology is also constantly innovating and speeding up. Full-link latency competition is in full swing in the industry. Sinovel continues to break through transaction latency , from a single business scenario to a full-service low-latency solution, from a single system to a complete institutional business platform and service ecosystem, providing the industry with complete solution. In 2023, Sinovel ATP Institutional Edition (ATP-I) adheres to the spirit of pursuing ultimate performance, stability and reliability, and seeking speed while maintaining stability, and fully launches [a new generation of quantitative QuantAPI, independent VIP counters, new acceleration packages and FPGA counters], toward the " Faster, more stable, "direction development.
SSE Technology Jinqiao Data Center Computer Room Hosting Service Introduction
Liu Xiaolin, Senior Manager of Market Headquarters, Shanghai Stock Exchange Technology Company
Jinqiao Data Center is the largest and highest-standard data center in the domestic securities industry. The total number of cabinets is about 18,000, including about 5,000 cabinets in the T4 main operation center and about 13,000 cabinets in the T3+ industry custody. All 6 custody buildings can be accessed The Shanghai Stock Exchange trading and market network, and Shanghai Jinqiao’s [Shanghai-Shenzhen Channel] can meet customers’ data transmission needs from Shanghai Jinqiao to the South Data Center, and provide [customized cabinets and agency operation and maintenance services] .
At present, Jinqiao Data Center provides services for users in securities, funds, futures, insurance, banks, trusts, exchanges, Sunshine Private Equity, overseas service agencies and other industries under the jurisdiction of the Second Committee of the Bank.
Interpretation of Abnormal Transaction Monitoring Rules
Chen Jing, Senior Product Manager of Sinovel ARC
In February 2023, the Shanghai and Shenzhen Stock Exchanges officially released the detailed rules for the monitoring of abnormal transactions on the main board. On the basis of the original rule categories, three new types of monitoring situations for reverse abnormal trading behaviors after pull-up were added, and six types of rule indicators were optimized and perfected to form New monitoring standards for abnormal trading behavior of typical stocks in 5 major categories and 14 subcategories. Under the background of the full implementation of the registration system, abnormal transaction supervision will be more standardized and transparent. Sinovel’s ARC risk control system has been fully adapted to the registration system, and is committed to providing better services for quantitative private equity institutions and escorting securities compliance transactions.
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The theme sharing session revolves around the whole chain of quantitative private equity development, and deeply analyzes the ecological services of quantitative private equity from six aspects: industry background , quantitative platform , computing power hardware , software services , computer room hosting and new policy interpretation .
What kind of changes will the current major reform of the industry—the registration system—bring to the field of quantification? Lu Yang from Guotai Junan Securities was invited to host the meeting. Zhang Yi, CEO of Xinhong Tianhe, Ling Huilian, COO of Jinge Liangrui, Jin Jidong, CTO of Kafang Technology, and Wang Pei, Director of Quantitative Investment of Zhuangxing, discussed the theme of "The Impact of the Comprehensive Registration System on Quantitative Trading " . In-depth discussions were held.
【For more roundtable content, please look forward to the next part】