It’s not often over a business lunch that you find yourself discussing data volumes and the spoken word. But last week, at our second industry networking lunch in London, we were considering the implications of the MiFID II legislation and the amount of storage all the conversations would need.
That was when the technical geek in the room produced this little gem. Apparently, at around the turn of the century, it was estimated that every word ever spoken by a human could have been recorded on five exabytes of storage. Now I assumed that an exabyte of storage was therefore pretty big and it is – in fact it’s a billion gigabytes.
But then it was revealed that such was the growth of data traffic, some of which is voice, that by the end of this year global IP traffic would pass the one zettabyte threshold and that, my friends, is 1000 exabytes.
Of course, MiFID II storage requirements are not going to reach those kinds of thresholds – or are they? Rather than the imagined task of recording and storing every word ever spoken in history, trading companies are faced with the actual task of recording and storing every word their traders speak to their customers – and every word their other staff say to their traders.
Just one City of London trading firm estimated that a single trading desk would generate 25,000 calls per week and that the weekly storage requirement was around 3 terabytes of data. That’s one firm generating some 150 terabytes of data a year.
Our new friend, the exabyte actually equals one million terabytes. Which means – given that MiFID II requires some recordings to be kept for as long as seven years – our sample City of London trading firm actually does need access to one exabyte of data storage. Pretty much by January 1, 2017, when the MiFID II rules come into play.
And of course, they are not alone. There are literally thousands of firms and IFAs affected. My lunchtime companions agreed this was probably not a job for any collection of in-house recorders and servers.
At VoxSmart we are offering a Cloud-based approach or a hybrid-system where the immediate material is stored locally and then the archive is switched to the cloud on a rolling basis – say every three months. Our cloud servers are highly secure and offer the type of limitless capacity that trading firms both large and small are likely to require.
Recording every mobile call – and text message and voicemail – and storing it securely and with ease of access is our specialty. It’s what we do. Trading is what our customers do: So we take care of the compliance, while they take care of the business.
Give me a call if you want to know more. I promise to keep the technical geek at arm’s length.