(background — there are many paper designs to process market data. The chosen designs on wall street reflect the intended use of this data.)
I won’t say “by traders” since it’s too much data for human consumption. It must be digested. Filtering is one of many (primitive) form of digestion.
I won’t say “by trading systems” as that’s vague. Which part of the trading system?
I won’t say “by algo trading engines”. What’s the algo? The abstract algo (before the implementation) is designed by quants based on models, not designed by IT. Traders may design too.
Q:Who has the knowledge to interpret/analyze such flood of market data?
A: not IT. We don’t have the product knowledge
A: not traders. In its raw form such market data is probably unusable.
A: quantitative researchers by definition are responsible for analyzing quantitative data.
A: data scientist also need to understand the domain and can use the data to extract insight.