Name Kowshik Moyya

Roll No 19BM6JP50

Case Value creation through Big Data Analytics at BSE

Date July 10th ,2019

The Bombay Stock Exchange(BSE) , established in 1875 was Asia’s oldest stock
exchange and fastest stock exchange in the world with trade speed of 6
microseconds.
BSE always followed continuous evolution by undertaking several innovative
initiatives.It’s fundamental mantra is “Never ever lose data”, keeping in mind this
Moto , BSE didn’t tweaked their legacy solutions.As time passed by, their entire
organisation became extremely reliant on their legacy solutions as they feared new
technology adoption would jeopardise the heritage of BSE of never losing data.
Due to this dependency they incurred a huge maintenance cost on the upgradation
of the proprietary solutions.They kept on paying money to stop the legacy system
from becoming obsolete.Problems faced by them are

● Data was growing at an exponential rate and executing complex queries is

getting difficult.
● Due to algorithmic trading , a huge data is getting generated and maintaining
and storing data is costly
● Data existed in silos so their backed architecture is not upto standards
● Legacy solutions limited only to IT team due to heavy licensing costs per user
● Compiling data queries to generate internal analysis was time consuming
● Possibility of job getting aborted in between as a result the team need to wait
for a week
● Employees had to work during weekends.

Owing to these problems, the advisory board of BSE suggested a move to open
source technologies. They opined that technology reached such a stage that they
need to explore.
But there are some risks involved in that decision too

● If they lose data , that might jeopardise the heritage of BSE

● Apprehension on the capability of new technology in efficiently handling their
process.

To tackle this problem ,BSE partnered with DataMetica for Hadoop based big data
implementation project.They were trying to venture into Indian market and BSE is its
biggest client, since it is prestigious they were very cognisant of this project.Data
Metica has prior experience in handling this type of projects and big data exposure
Initially DataMetica carried out proof of concept(POC) at zero cost and in less
time.So there is no harm for BSE in allowing to carry out a POC.
So, BSE made a right choice Initially by choosing DataMetica.

DataMetica built an enterprise data hub by collecting data from various sources and
provided BSE with big data governance system.Year after Year the synergy between
BSE and the company increased and even the CEO of BSE acknowledged
DataMetica as key driver in big data implementation project.He even acknowledged
that the company completed the project without much of BSE’s involvement.They
chose a right partner.

Stock Exchanges plays a role of regulator.They are responsible for maintaining

market integrity, orderly functioning of the market.Usually companies report the new
to exchanges when something happens.If anything is not reported but news(rumour)
comes out , then they check the authenticity of the news.Earlier BSE use to monitor
for any rumours manually by reading news papers, social media, online forums
etc.But this task was really cumbersome.BSE wanted to leverage big data platform
to solve this issue.
So DataMetica roped in to address this issue.As a result they came up with a
solution.The solution addressed so many issues

● Freed the employees from the routine work.

● Now employees focussing on other complex activities.
● So many sources to detect the rumour
● 90% accuracy in detecting the rumour and the solution checks 7 times a day
● Manual error in rumor detection can be eliminated
● Manual scanning of Twitter earlier was difficult but with development of twitter
based keywords list ,rumour detection in twitter became easy.

The BSE had benefited with the big data platform adoption as costs reduced by 20%
and performance increased in processing the data.Their new technology adoption is
turning out to be fruitful.But still BSE can enhance the big data based system within
their organisation

● Improve accuracy of rumour detection from 90%.

● Increase the number of keywords in rumour detection
● Include other media platforms like Facebook,TVs etc
● Check the feasibility of adoption of big data platform to other internal
departments
● Check the feasibility of automating complex activities
● Check for feasibility of fraud detection.