Data-Driven Decision Execution Systems

D3X Systems is a provider of cutting-edge software solutions to facilitate systematic decision modeling and execution in the investment management industry.

Our Mission

To empower investors through technology to design and implement superior, systematically-driven investment portfolios that are objective, innovative and cost-effective for their clients.

About Us

D3X Systems was founded by engineers with decades of experience in building quantitative investment platforms at some of the world's largest asset management firms and hedge funds. We combine deep expertise in capital markets and technology to design world-class solutions that are highly customizable, modular and with unparalleled runtime performance. Our systems are tailored for cloud deployment but can equally be installed and managed by your own engineers in on premise data-centers.

Investment Management Challenges

The embrace of both quantitative and quantamental investment strategies continues to reshape the Asset Management industry, transforming the business of managing money into an increasingly complex and technology driven endeavour. These trends are evolving rapidly, and are likely to continue having a profound impact on the industry over the next decade.

On the beta end of the spectrum, factor investing and alternative indexing are significantly increasing the technology underpinnings of product design and implementation, while realizations of big data, machine learning and artificial intelligence are dramatically influencing the hunt for alpha.

The technological demands inherent in these trends are not only challenging an investment manager's ability to remain competitive, but the significantly increased costs associated with this complexity coupled to the relentless downward pressure on management fees, imposes existential challenges to the business model. Adapting to the confluence of these pressures will be critical to both maintaining and growing profitability.

Addressing These Challenges

In the face of these uncontroversial realities, investment managers and asset owners need to identify their comparative value-add in order to reduce the surface area of the technology problem they need to solve for internally.

The breadth of engineering complexity imposed by a systematic investment process means that even the largest firms cannot build best-in-class solutions to all problems. In addition, not every aspect of a systematic process offers an investor the opportunity to build a competitive edge, yet still requires broad, deep and costly expertise to simply maintain parity with competitors.

D3X Systems helps investment managers and asset owners reduce the surface area of their technology challenges by providing cutting-edge solutions to address key requirements of a sophisticated systematic process. Our ultimate objective is to serve as a technology partner in order to enable investors to focus their finite resources on areas where they can maintain and extend their comparative advantage.

Technology Showcase

Enterprise Class Process Orchestration

At its most basic level, a systematic investment process is essentially a large number of computer programs that need to be run in an appropriate sequence. Some of those programs download and validate input data, others run statistical analysis to generate asset return and risk forecasts, while others optimize portfolios and then execute proposed re-balance orders.

This entire workflow is best described by a Directed Acyclic Graph (DAG) where the nodes represent the programs that need to be run, and the edges define the sequencing and dependencies between these programs. Depending on how complex your workflow is, there could easily be thousands of nodes in the DAG, making the coordinated execution of this graph a non-trivial exercise.

Qronos is a sophisticated distributed process orchestration engine that can be used to describe, manage and instrument the execution of such a DAG. Process failures within the graph can easily be identified and remedied in order to restart the computation in the most efficient manner. The system performs smart allocation of workloads over a potentially large number of compute nodes, thereby efficiently using hardware capacity in your data-center.

Qronos addresses a fundamentally different problem to products such as Kubernetes, Docker Swarm or Apache Mesos, which are designed for container orchestration. For more details, feel free to get in touch.

Show me more

An Advanced Analytics Library for the JVM

The Morpheus library is designed to facilitate the development of high performance analytical software involving large datasets for both offline and real-time analysis on the Java Virtual Machine (JVM). It serves as a foundational element for much of the software technology developed by D3X Systems. It's open source and released under the Apache Software Foundation License, and therefore freely available to integrate and use in your projects.

Scientific computing languages like R, Python and Matlab are great for doing research, however they are not always well suited for the development of large scale production systems. The primary reason for this is that their dynamically typed nature often yields products that are difficult to maintain, and dangerous to refactor. The Morpheus library attempts to address these concerns by providing many of the powerful abstractions that make these aforementioned languages so powerful for doing research, but in a statically typed language, with the goal of making code complexity easier to maintain and scale.

Morpheus ships with a number of free adapters to load data from various providers, including Quandl, The World Bank and the The Federal Reserve FRED database. In addition to these free data sources, commercial adapters for Bloomberg and DataStream among others are also available.

Show me more