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In today’s Cloud Wars Minute, guest host Kenny Mullican shines a light on how Hudson River Trading is transforming its trading strategies through a strategic partnership with Google Cloud.
Highlights
00:01 — Hudson River Trading (HRT) is using Google Cloud to enhance its trading model. This collaboration provides access to Google Cloud’s powerful and scalable computing infrastructure. One way this is going to work is through optimized resource allocation.
01:10 — Google Cloud offers something called the Dynamic Workload Scheduler, which will play a crucial role in ensuring HRT’s computing resources are utilized to their full potential. By monitoring real-time demand across various tasks and workloads, the scheduler can dynamically allocate AI chips where they’re needed most at any given moment.
02:26 — Spot Virtual Machines allow HRT to take advantage of unused cloud capacity at a significantly lower cost. These virtual machines are priced lower than standard instances because they can be preempted or terminated by Google at any time if they’re needed for higher-priority workloads. However, it allows HRT to use them for non-critical, flexible workloads
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03:19 — This is often touted as one reason to move to the cloud, and it definitely plays out in a situation like this. Google Cloud’s scalable infrastructure is a game-changer for HRT, offering it the ability to adjust its computing resources on the fly to meet the specific demands of its research and trading activities.
04:33 — It can rapidly respond to market changes, testing new strategies or models without the delays that would come with traditional fixed on-premises infrastructure. Essentially, the ability to scale resources in real time gives HRT a significant operational advantage.
05:20 — What kind of broader impact might this have on the financial trading industry in general? I think we’re going to see an acceleration of innovation. Smaller firms or new entrants in the market can access the same level of computational power as established players. You’re going to see increased efficiency and cost savings.
06:06 — Finally, there will be enhanced risk management. With the ability to run extensive simulations and stress tests in the cloud, firms can improve their risk management practices, better understand potential risks, and refine their strategies accordingly.
