Inside Market Data November 17, 2014 waterstechnology.com/imd Volume 30, Number 6 Osaka Exchange Formalizes Data Policy ORGANIZATION & STRATEGY 3 Colt to Buy Japanese The Osaka Securities Exchange has published March next year, JPX plans to migrate OSE Network, Hosting Partner a formal market data policy for the first time, data customers to the TSE’s Market Informa- KVH outlining the terms of usage and distribution of tion Client System (MICS)—the mechanism by its market data, as an initial step towards greater which users can enter into contracts with the RATINGS alignment with the Tokyo Stock Exchange, TSE for market information. The MICS system 5 S&P Capital IQ Adds which merged its operations with OSE in 2013 enables users to report what data they consume Moody’s, Third-Party to form the Japan Exchange Group (JPX). and how they use it, and outlines terms for Ratings to Xpressfeed Since the merger, JPX has integrated the termination of any agreement. Once OSE users two exchanges’ cash equity markets onto migrate to MICS, the exchange will issue an ID EXCHANGE WATCH TSE’s Arrowhead platform, and has consoli- and passcode to subscribers who wish to enter 6 Deutsche Börse Adds dated all derivatives trading operations onto into an Information Provision Agreement. Cleartrade Data to CEF the OSE’s J-Gate trading system, supplied by For now, the respective market data poli- Nasdaq OMX. cies of JSE and OSE will not be merged, EXCHANGE WATCH As part of ongoing migration efforts, in though publication of the official OSE >3 7 Ukranian Exchange Eyes Data Policy Harmonization with Moscow Exchange SmartMarketData Preps for Jobs Data Analytics
SPECIAL REPORT Startup data provider SmartMarketData is pre- ment-issued employment figures. 8 Latest Exchange Results paring to enter the second phase of its launch, In fact, prior to SmartMarketData inking a Show Mixed Fortunes where it will develop proprietary analytics to deal to distribute the data to financial firms, accompany the datasets it distributes, to make Toby Dayton, president and chief executive of ADMIN & MANAGEMENT it easier for investment professionals beyond LinkUp parent JobDig, used the data to create 9 Asset Control Adds Pricing quantitative analysts to access its data. his own estimate for US Bureau of Labor Sta- Input Monitoring to AC Plus, Hartford, Conn.-based SmartMarketData, tistics non-farm payroll figures, which the com- Preps ‘Metering’ Cache which launched in June, currently distributes pany contributed to Bloomberg’s consensus employment and hiring-related data from job jobs forecast model, says Larry Green, founder website LinkUp.com, which quantitative ana- and president of SmartMarketData. “Certain COLUMNS lysts at buy-side and sell-side firms can use as banks were building LinkUp’s number into 4 OPENING CROSS a leading indicator of a company or sector’s their models—but that’s just one number. Now In Search of Data’s ‘Perfect health, rather than waiting for official govern- we have productized LinkUp’s complete >3 Harmony’
5 HERD Moscow Exchange Bows Historical Datasets
6 SCROLLING NEWS The Moscow Exchange has launched a range close/high-low and volume data (Type C). of new historical data products for its securities, The full-depth data covers all orders and currencies, derivatives and over-the-counter trades for the exchange’s equities, bonds, markets, to provide trading members, data ven- futures and options markets and will primarily dors and other subscribers with a golden copy be used by high-frequency trading firms for of historical data for testing trading algorithms beta testing strategies, says Denis Avetisyan, and performing technical analysis. head of market data at Moscow Exchange. The exchange is offering three new prod- “The BBO and trade data product is for firms ucts: Order Book, which covers data on all who are trading less liquid instruments who trades and orders (Type A); Top of Book, don’t need the full order book, and the end- which provides data on all trades and best of-day summary data is used as a reference by orders (Type B); and End-of-Day summary back offices in Russia,” he adds. information, which provides bid, ask, open- According to the Moscow Exchange’s >10 The new bumper issue
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To download and find out more visit waterstechnology.com/static/imd-app EXCHANGE WATCH CONTENT FOCUS OSE Formalizes Market Data Policy SmartMarketData
<1 policy document is the first step cal data such as trading volumes, trad- <1 dataset of over 2 billion job records, towards further integration between ing values, and open interest by market including all the descriptive data relating to the two exchanges, officials say. and product; as well as full order book those jobs,” he adds. By migrating OSE users to MICS, information. Green is now finalizing the second phase the merged exchange is “leveling the of SmartMarketData’s development, which ground and trying to achieve the same Direct vs. Indirect will likely include multiple sub-phases, but quality of services,” said Wakako Mat- Users can receive the data feeds by con- will see the vendor develop and launch ana- suda, official for information services at necting directly or via a vendor to the lytics on the LinkUp dataset within the next TSE, speaking at the Asia Pacific Finan- OSE’s market data distribution system year that will expand its potential client base cial Information Conference in Hong (which the exchange classifies as “direct to any investment professional. Kong earlier this month. usage”), or can subscribe to the data For example, gathering data on the posi- Previously, OSE had a market data indirectly—for example, if a vendor tions a company is seeking to fill can indi- policy in place, but never formally pub- wishes to distribute the data via a ter- cate its future strategy and where it plans to lished its policy document. However, minal product (“indirect usage”). In expand, Green says. “With LinkUp Raw, the publication of OSE’s policy will both cases, those carrying or distribut- you can predict where a company expects support its migration to MICS, as it ing the data will be required to sign an to be in three or six months, rather than will make the terms of the agreement Information Provision Agreement with waiting for government or payroll surveys public for the first time, officials say. OSE, though end-users who consume that show activity over the past three or six The policy document, which will OSE market data via terminal products months,” he adds. “Beyond quants, this come into effect in March 2015, covers will not need to sign an agreement with will interest fundamental stock investors distribution of real-time Level 1 futures the exchange. Subscribers who use OSE and analysts, who are probably trying to and options data; index data such as the market prices or index information to do this themselves by looking at job and Nikkei 225, the Nikkei Stock Average create their own derived data points are company websites.” Volatility Index and the Nikkei Stock also not required to sign an agreement. Users can also use the descriptive data Average Dividend Point Index; statisti- Faye Kilburn in job postings to drill down into specific requirements. For example, if job postings show a spike in demand for developers with ORGANIZATION & STRATEGY expertise in a specific company’s products, traders may want to consider investing in Colt to Buy Japanese Network, the company that makes those products. SmartMarketData can also derive analytics Hosting Partner KVH based on regions, sectors and industries to create macroeconomic-level indicators that 5L[^VYRHUKOVZ[PUNZLY]PJLWYV]PKLY 7YPaT SV^SH[LUJ` KH[H HUK [YHKPUN users can slice and dice however they prefer. *VS[ OHZ HUUV\UJLK H KLHS [V PUMYHZ[Y\J[\YL Z\IZPKPHY` HSYLHK` OHZ Another focus of phase two will be map- HJX\PYL 1HWHULZL JV\U[LYWHY[ 2=/ HMVV[WYPU[PU[OL(ZPH7HJPMPJYLNPVU ping SmartMarketData’s internal company MVY IPSSPVU IPSSPVU PU 0U MHJ[ 4HYRL[7YPaT YLJLU[S` WHY[ identifier to the Legal Entity Identifier, so JHZO[VL_WHUK[OL]LUKVYPU[V(ZPHU ULYLK ^P[O 2=/ [V THRL 4HYRL[ that firms can align and group company THYRL[Z ^P[O H WHY[PJ\SHY MVJ\Z VU 7YPaT»Z 7YPaTUL[ MPUHUJPHS L_[YHUL[ results to specific industry benchmarks to :PUNHWVYL/VUN2VUNHUK:LV\SPU H]HPSHISL]PH2=/»ZKH[HJLU[LYZPU[OL see how changes in employment levels YLZWVUZL [V PUJYLHZLK KLTHUK MYVT YLNPVUHSSV^PUN2=/JSPLU[Z[VHJJLZZ would impact indexes, exchange-traded NSVIHSJ\Z[VTLYZ TVYL [OHU THYRL[Z HJYVZZ (ZPH funds and derivatives. ;OL HJX\PZP[PVU ^PSS HSSV^ *VS[ [V ,\YVWLHUK[OL<:]PH7YPaT5L[04+ To support the planned expansion, Green WYV]PKL UL[^VYR KH[HJLU[LY HUK 0; 1\UL says he will likely need to hire a sales staff, ZLY]PJLZ[VJSPLU[ZHJYVZZ,\YVWLHUK 0UHKKP[PVU2=/·^OPJOOHZVMMPJLZ as well as potentially distributing the data (ZPHIL[[LYSL]LYHNLP[ZL_PZ[PUNPUMYH PU 6ZHRH :PUNHWVYL /VUN 2VUN and analytics via other third-party services Z[Y\J[\YL HUK [V [HYNL[ J\Z[VTLYZ PU :OHUNOHP :LV\S HUK *OPJHNV· and displays. “We can handle distribution to PUMVYTH[PVUPU[LUZP]LPUK\Z[Y`ZLJ[VYZ V\[ZV\YJLZZVTLVMP[ZZLY]PJLVWLYH quants in feeds—XML, CSV of flat files…. PUJS\KPUNJHWP[HSTHYRL[ZTLKPHSLNHS [PVUZ[V*VS[»ZZOHYLKZLY]PJLZJLU[LY But for non-quants, the primary method of HUK PUZ\YHUJL ZLY]PJLZ MP_LK HUK PU 0UKPH ^OLYL [OL *VS[ HUK 2=/ consumption will be desktops, not feeds— TVIPSL UL[^VYR VWLYH[VYZ HUK JSV\K [LHTZ^PSSILJVTIPULKMVSSV^PUN[OL so partnerships are a possibility for our ZLY]PJLWYV]PKLYZ KLHS phase two,” he says, adding that the vendor 3VUKVUIHZLK *VS[ PZ J\YYLU[S` ;OL JVTWHUPLZ HSZV OH]L JVTTVU will seek partners that can offer seamless WYLKVTPUHU[S`MVJ\ZLKVU[OL<2HUK V^ULYZOPW HUK HYL JVUULJ[LK H[ [OL integration with clients’ existing workflows. ,\YVWLHUTHYRL[Z[OV\NOP[Z4HYRL[ IVHYK SL]LS 2=/ PZ V^ULK >10 Max Bowie
waterstechnology.com/imd November 17, 2014 3 OPENING CROSS In Search of Data’s ‘Perfect Harmony’
(NHPUZ[[OLVM[LUKPZJVYKHU[TLSVK`VM[OL MVYTJV\SKWYV]PKLL]LUNYLH[LYWV[LU[PHS *SLHY[YHKL»Z KH[H H]HPSHISL ]PH P[Z SHYNLY MPUHUJPHS THYRL[Z P[»ZNVVK [V RUV^ [OH[ Z`ULYNPLZPMHJJVTWHUPLKI`HZPUNSLZL[ WHYLU[ PZ [OH[ P[ PUZ[HU[S` NHPUZ H T\JO [OLYL»Z HS^H`Z H OHYTVU` WSH`PUN PU [OL VMKH[HWVSPJPLZ SHYNLY KPZ[YPI\[PVU HUK THRLZ P[ T\JO IHJRNYV\UK[VZ\WWVY[[OH[TLSVK`OVSK :PTPSHYS` [OL
Jo Webb, Product Director Incisive Media Tel: +44 (0)20 7316 9474 14th Floor (Unit 1401-3), Devon House, Taikoo Place [email protected] 979 King’s Road Quarry Bay, Hong Kong Tel: +852 3411 4900 © 2014 Incisive Media Investments Limited Unauthorized photocopying or facsimile Subscription Sales distribution of this copyrighted Monazer Rashid Tel: +44 (0)20 7316 9537 newsletter is prohibited. [email protected] All rights reserved. ISSN 1047-2908.
4 November 17, 2014 waterstechnology.com/imd RATINGS HERD
S&P Capital IQ Adds Moody’s, MNI Appoints Suzanne Petren Moritz CEO Third-Party Ratings to Xpressfeed +L\[ZJOL)YZL4HYRL[+H[H:LY] PJLZ[OL0;HUKKH[HHYTVM+L\[ZJOL S&P Capital IQ, the data and analytics Capital IQ added ratings from S&P to )YZL OHZ OPYLK :\aHUUL 7L[YLU business of McGraw-Hill Financial, has Xpressfeed in 2012. 4VYP[aHZ[OLUL^JOPLML_LJ\[P]LVM made credit ratings from rival ratings In addition to Moody’s, S&P Capital P[ZPUMVYTH[PVUZ\IZPKPHY`4HYRL[5L^Z agency Moody’s available via its real- IQ also planns to add ratings from other 0U[LYUH[PVUHS 5L^ @VYRIHZLK7L[YLU time Xpressfeed data delivery platform to ratings agencies, including Fitch Rat- 4VYP[a YLWSHJLZ 4PJOHLS *VUUVY provide investment banks with additional ings and a number of domestic ratings ^OV OHZ Z[LWWLK KV^U [V W\YZ\L metrics for credit risk analysis, and plans to agencies, though the vendor does not V[OLYVWWVY[\UP[PLZVMMPJPHSZZH`7L[YLU add other ratings from other agencies in have an official timeline for making these 4VYP[a ^HZ TVZ[ YLJLU[S` ]PJL WYLZP response to customer demand. available. KLU[HUKTHUHNPUNKPYLJ[VYVMJVU[LU[ The vendor is sourcing Since issuers have a choice WYV]PKLY 3L_PZ5L_PZ» 3L_PZ 7YHJ[PJL Moody’s ratings directly from of which credit rating agency (K]PZVYHUK2UV^SLKNL4VZHPJ^OPJO Moody’s Analytics, the data and evaluates their credit risk, the WYV]PKLZYLHS[PTLZLJ\YP[PLZHUK:,* software arm of Moody’s, via its big three rating agencies do PUMVYTH[PVU7YPVY[V[OH[ZOLZLY]LKPU Ratings Delivery Service, which not cover exactly the same uni- ZL]LYHSTHYRL[PUNZ[YH[LN`HUKVWLYH provides a feed of credit rat- verse of instruments, so a single [PVUZYVSLZV]LYH`LHYZ[PU[H[[OL ings data that updates every five vendor’s ratings may not cover JVTWHU` minutes. all the relevant stocks for each “Once S&P Capital IQ Evan Shenkin investor, Shenkin says. “There Chi-X Australia Hires NuPont’s receives the data from Moody’s, is demand for complete cover- Lampropoulos for Market Data we link the Moody’s identifiers to our age of a client’s portfolio with respect to :`KUL` (\Z[YHSPHIHZLK HS[LYUH[P]L Cross Reference Solution master, which the risk profile of an issuer or security. By [YHKPUN Z`Z[LT *OP? (\Z[YHSPH OHZ then allows clients to understand the offering Moody’s ratings alongside S&P HWWVPU[LK *OYPZ 3HTWYVWV\SVZ[V complete risk exposure across asset types ratings, our clients have increased cover- SLHK KL]LSVWTLU[ VM P[Z THYRL[ KH[H and risk metrics,” says Evan Shenkin, age across asset classes and regions to I\ZPULZZ 3HTWYVWV\SVZ PZ L_LJ\ associate director of product manage- meet regulatory capital adequacy require- [P]L KPYLJ[VY H[ KH[H HUK [LJOUVSVN` ment at S&P Capital IQ. “A core value ments,” he adds. PUK\Z[Y` JVUZ\S[HUJ` 5\7VU[ ^OLYL of S&P Capital IQ is to provide clients As global markets become more inter- OL YLJLU[S` ZLY]LK HZ HU HK]PZVY [V with a robust Cross Reference Solution. connected, one of the greatest challenges *OP? *HUHKH»Z THYRL[ KH[H I\ZP We have been providing this solution, faced by financial institutions is to under- ULZZ ILMVYL YL[\YUPUN [V OPZ UH[P]L mapping and linking identifiers for many stand the relationship between companies, (\Z[YHSPH LHYSPLY [OPZ `LHY 04+ 1\S` years… [and] clients rely on our linking issuers, and issues, Shenkin says, adding 7YPVY [V QVPUPUN 5\7VU[ PU capabilities to understand their risk expo- that incorporating competitor ratings to 3HTWYVWV\SVZ^HZOLHKVMI\ZPULZZ sure, as well as to adhere to various capital Xpressfeed “brings to light this ‘intercon- KL]LSVWTLU[H[(SWOH,_JOHUNLHUK adequacy regulations,” Shenkin adds. nectedness,’ providing linkages to sup- OHZHSZVZLY]LKHZI\ZPULZZKL]LSVW By viewing the ratings side by side, port cross-reference systems deployed at TLU[THUHNLYH[:[H[7YV*HUHKHH customers can perform broader counter- financial institutions, and giving the ability ZHSLZ ZWLJPHSPZ[ H[ 9L\[LYZ HUK OLSK party risk analysis using ratings from both to understand potential risk and business WYVK\J[ HUK WYVQLJ[ THUHNLTLU[ Moody’s and S&P Capital IQ’s sibling exposure.” YVSLZ H[ 4HJX\HYPL )HURLYZ ;Y\Z[ ratings agency Standard & Poor’s. S&P Faye Kilburn HUK7VU[0U[LYUH[PVUHS
waterstechnology.com/imd November 17, 2014 5 EXCHANGE WATCH WALLBOARD
Nov. 18: European Trading Architecture Deutsche Börse Adds Cleartrade Data to CEF Summit. London. Organized by Incisive European Energy Exchange-owned com- those—but they have already signed the Media. Details at: modities and freight derivatives mar- Deutsche Börse contract agreement, so it’s waterstechnology.com/events ket Cleartrade Exchange is making its just a question of ticking an additional box real-time market data available via EEX and paying the extra fee.” Nov. 20: FISD Toronto and Holiday Party. parent Deutsche Börse’s CEF datafeed, The data will become available via the Toronto. Organized by FISD. Details at: to increase participation on Cleartrade CEF feed on Monday, Nov. 24 in four siia.net/events among Deutsche Börse members by mak- channels that trading firms can subscribe ing it easier for firms to access its data. to individually. Users can buy data from Dec. 2: Breakfast briefing: IBOR Cleartrade head of market data Bob Cleartrade and from commodities broker London. London. Organized by Incisive Antell says making the data available via Freight Investor Services—whose man- Deutsche Börse will remove some barriers aging director John Banaszkiewicz was Media. Details at: to adoption of the content by vendors. previously Cleartrade’s initial investor and waterstechnology.com/events “We see this as a way to get our data majority shareholder before the sale to more globally distributed, and to make EEX in December 2013—for €225 per Dec. 4: Breakfast briefing: IBOR New connecting more cost-effective for ven- month each plus a €15 per-terminal fee, York. New York. Organized by Incisive dors, which is good news for members, and to the World Container Index and Media. Details at: because it’s easier for them to get data the China Steel Index for €112 per month via their existing suppliers,” Antell says. each plus €4 per terminal. waterstechnology.com/events “Gone are the days when you could go to “Anyone looking at Baltic Exchange Dec. 4: FISD Issue Brief and Christmas any quote vendor… and they would bend data or iron ore markets should be look- over backwards to add your data. Some of ing at our data—and anyone looking at Party. London. Organized by FISD. the quote vendors had to justify why they data from Clarkson Commodities should Details at: siia.net/events should carry it.” be looking at data from Freight Inves- Deutsche Börse connects to Cleartrade’s tor Services,” Antell says, adding that he Dec. 8: Waters USA. New York. data via the same API that Cleartrade uses expects a “natural pickup” in demand Organized by Incisive Media. Details at: to create a datafeed directly from its trad- from Deutsche Börse subscribers as a waterstechnology.com/events ing engine, then adds the data to its CEF result of having access to the data and from datafeed that it distributes to members and Deutsche Börse’s marketing efforts. Dec. 8: American Financial Technology other subscribers. Antell says Cleartrade The exclusive deal covers Cleartrade’s Awards. New York. Organized by currently has more than 55 members, real-time data, though EEX will continue but that the distribution via CEF instantly to handle sales of end-of-day Cleartrade Incisive Media. Details at: opens up the exchange’s data to a client data—similar to how Deutsche Börse sells waterstechnology.com/events base of more than 400 vendors that sub- EEX’s real-time data but not its end-of- scribe to Deutsche Börse’s feed. day data—while Cleartrade will continue Dec. 17: FISD General Meeting and “Since our data is already integrated to sell its raw historical trade data itself. Holiday Party. New York. Organized by into the CEF system, vendors can already “Deutsche Börse has a much larger net- FISD. Details at: siia.net/events get it. It’s pumped down the same line work of salespeople… and had Cleartrade in the same format,” he says. “They still continued to expand on its own, I would April 21, 2015: North American Trading have to design pages to display all the con- have needed to employ a team of people Architecture Summit. New York. tracts—and each vendor has different ways to do that—whereas now our new owner of designing pages… and how they group is providing that team,” he says. Organized by Incisive Media. Details at: data into certain packages and market Max Bowie waterstechnology.com/events
SCROLLING NEWS
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6 November 17, 2014 waterstechnology.com/imd EXCHANGE WATCH Ukrainian Exchange Eyes Data Policy Harmonization with Moscow Exchange
The Kiev-based Ukrainian Exchange is monization, the Ukrainian Exchange “Offering free data is a good choice for a seeking to align its market data policies is now seeking to implement a range small market, but it can’t be free forever, with those of its Russian parent group, of new data policies to bring its data so we are going to change the policy the Moscow Exchange, to make it easier usage directives into line with those of while still supporting brokers by offering for local and international trading partici- the Moscow Exchange, says Konstantin a fee waiver,” Kakusha adds. pants to consume its data. Kakusha, market data specialist at the In addition to new fees, the exchange Currently, the Ukrainian Exchange Ukrainian Exchange. is considering introducing a non-dis- distributes its data via the same FIX/ play data usage policy, and is reviewing FAST datafeed format used by the Mos- Easier Access, Compliance the non-display policies of the Moscow cow Exchange, which began moving “By consolidating our feed with the Exchange and other global exchanges all its markets onto a single FIX/FAST Moscow Exchange, users can consume in industry association FISD’s Exchange implementation last year, following the our data via one terminal, one feed, and Constituent Group for inspiration to 2011 government-ordered merger of the one technical implementation. But now identify best practices around implement- RTS and Micex exchanges into a single we are trying to implement the same data ing a new policy. “We are developing a national venue. policies as the Moscow Exchange,” to commercial model, and it’s useful to hear The Ukrainian Exchange distributes make it easier for consumers to deal with about non-display best practices used at the feed—which leverages the industry data from both exchanges and to ensure other exchanges to determine whether we standard FIX Protocol and FAST (FIX compliance when conducting exchange need such a policy,” Kakusha says. Adapted for Streaming) compression— data audits, Kakusha says. Ultimately, any new data policy should directly to trading members, while the Alongside a full-depth, real-time feed, help the Ukrainian Exchange to broaden Moscow Exchange distributes the data the Ukrainian Exchange offers end- the reach of its data, while continuing to to global vendors such as Bloomberg and of-day and historical datafeeds free of support stock market activity in Ukraine, Thomson Reuters. charge, but may introduce fees for non- he adds. Having already achieved technical har- trading members in the near future. Faye Kilburn
waterstechnology.com/imd November 17, 2014 7 SPECIAL REPORT Latest Exchange Results Show Mixed Data Fortunes
Exchanges reported a mixed bag in their and secondary market activities, post-trade increased by almost 16 percent year-on- latest results, with three exchanges around services in Italy, and technology products. year to HK$2.47 billion ($320 million), the globe reporting high single-digit data Canadian exchange TMX also recorded driven mainly by higher trading volumes. revenue increases and others registering an 8 percent rise in data revenues to The Singapore Exchange, meanwhile, flat or lower revenues resulting from low C$45.9 million ($40.48 million) in Q3, reported an 8 percent drop in overall volatility and fewer subscriber numbers. driven by audit recoveries from under- revenue to S$169 million ($135.17 mil- The London Stock Exchange did not reporting of real-time data, as well as the lion), resulting from the negative impact break out figures for the second quarter of appreciation of the US dollar against the of low volatility. Market data revenues its calendar year, but reported an 8 percent Canadian dollar and higher revenues from were flat at S$8.6 million ($6.88 million) increase in information services revenues datafeeds, low-latency infrastructure pro- in Q1 2015 compared to Q1 last year, as for the first half of 2014 to £181.0 mil- vider TMX Atrium and co-location serv- increased derivatives market data distribu- lion ($285.1 million), mainly as a result ices. Overall revenues also rose 3 percent tion offset a decline in securities market of strong performance by the exchange’s year-on-year to C$170.2 million ($150.11 data distribution. However, connectivity FTSE index business—where revenue rose million) in Q3 compared to Q3 last year, revenue rose 3 percent to S$10.6 million 10 percent over 2013 to £92.7 million mainly driven by increased numbers of list- ($8.48 million), boosted by a 30 percent ($145.9 million)—and products including ings and the information services business. year-on-year jump in the average number UnaVista. However, revenue from real- In Asia, Hong Kong Exchanges and of co-location racks in use at its datacenter. time data fell 4 percent, mainly due to a 3 Clearing’s market data sales rose by just Data revenues at the Japan Exchange fell percent drop in the number of professional under 8 percent to HK$194 million 2 percent to ¥3.8 billion ($32.7 million) users of real-time UK data from 80,000 to ($25.02 million) compared to the same for its calendar Q2 compared to the previ- 78,000, though the number of terminals period in 2013, thanks to new datafeeds ous year, though fees from co-location and consuming data from LSE’s Borsa Italiana introduced following the launch of its proximity services rose 16 percent to ¥712 market rose 1 percent to 129,000. Total Orion Market Data Platform in the sec- million ($6.13 million). Total operating revenue jumped 15 percent to £592.6 mil- ond half of 2013, and more demand for revenue of ¥25 billion ($215 million) was lion ($376.6 million), mainly as a result of non-display data services. Overall HKEx also down by 2 percent from Q2 last year. its LCH.Clearnet clearinghouse, primary revenue for the quarter ending Sept. 30 Giulia Lasagni
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8 November 17, 2014 waterstechnology.com/imd ADMINISTRATION & MANAGEMENT Asset Control Adds Pricing Input Monitoring to AC Plus, Preps ‘Metering’ Cache
Data management software vendor Asset trol data quality, Petti says. “Institutions data is being accessed, you find situations Control will roll out an enhanced version that are doing this the old-fashioned way where the same data is being requested of its AC Plus data management platform carry a very high degree of risk on data over and over and paid for every time. next year featuring improved audit trail quality,” he adds. By providing a well-managed data archive capabilities, to help its clients validate the At the end of next year, the vendor also that the whole enterprise can access, we provenance of data inputs used to create plans to introduce data metering function- can make sure… that you don’t have to prices, to comply with regulation and to ality aimed at helping clients identify how pay for it again.” meet their business needs. individuals and areas within their organi- The latest release, version 8, will allow zations use data, which will also leverage Automation customers to trace the provenance of an Asset Control’s central data archive to In addition, Asset Control will introduce individual piece of data from the moment fulfill duplicative queries, so that end-users a new real-time dashboard that will enable it enters their systems, says Richard Petti, who request the same data more than customers to observe the state of progress chief executive of Asset Control. once do not need to pay extra vendor fees of data routines at any point in time and “Data quality is all about being able for accessing the same data. allow them to create an automated sched- to prove the provenance. If you’ve got a “If you look at where costs in the data ule of activities for importing, transform- piece of data and you’ve got a price, and space arise for our customers, a lot of ing and exporting data to meet their enter- the regulator wants to know where that it comes from data consumption from prise requirements, and will also roll out a price came from, unless you have an audit vendors. One of the biggest challenges separate feature that allows customers to trail on that piece of data, you can’t prove institutions have is to understand who is go back, analyze and extract the histori- what it is—it’s just a piece of data,” he using the data, where. The advantage of a cal data necessary to perform the scenario says. “You need to show the policy around solution like ours is that because you have risks required by the Basel Committee’s that piece of data, [whether it is] pricing a centralized, well-managed archive… fundamental trading book review. or reference data. Then you need to prove rather than going to data vendors’ histori- “As an enterprise, you want to be able to what happened to it from the point it was cal archives and paying for a data search, observe routines to make sure that things created to the point it was used in risk you can simply come to the data archive are running as they should,” Petti says. “If reports.” that we are managing,” Petti says, add- these processes don’t run successfully, you Systems that manually aggregate price ing that the vendor can also manage who wind up in a situation where your traders points from multiple sources including uses—and is authorized to use—which come in in the morning and they don’t vendors, trading systems and balance datasets. “Where customers are not dis- know what the P&L is.” sheets tend to have limited ability to con- ciplined and controlled about the way Giulia Lasagni
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waterstechnology.com/imd November 17, 2014 9 ORGANIZATION & STRATEGY EXCHANGE WATCH Colt to Acquire Moscow Exchange Bows Network, Hosting Historical Full-Depth Datasets <1 website, the data can be used for traders…. It’s okay for display, but not for Partner KVH optimizing participants’ trading algorithms, algo traders,” he adds. running technical analysis, and meeting the The Moscow Exchange has had the data <3 I` -PKLSP[` 4HUHNLTLU[ needs of back-office functions. for some time, but has only now decided 9LZLHYJO -49 [OL WHYLU[ The data is delivered via FTP down- to offer it as a product, after the launch of JVTWHU` VM -PKLSP[` 0U]LZ[TLU[Z load as a zipped CSV file containing his- a new standardized fee policy document HUKP[ZPU[LYUH[PVUHSI\ZPULZZ-PKLSP[` torical data back to the early 1990s for and non-display data policy in March raised >VYSK^PKL0U]LZ[TLU[-03HUKI` some instruments depending on when they awareness of the exchange’s data products. HZZVJPH[LZ VM -49 HUK -03 -49 began trading. “Since we introduced the new data policy HSZV V^UZ WLYJLU[ VM *VS[ Customers can order the data via the in March, every trading member has asked ^P[O-033PTP[LKJVU[YVSSPUNHUV[OLY exchange’s website, and can opt to sub- us for historical data because before, people WLYJLU[ VM [OL JVTWHU` scribe to historical data for all markets, didn’t realize historical data was available,” 4LHU^OPSL *VS[ JOPLM L_LJ\[P]L or single markets or instruments, with Avetisyan says. 9HRLZO )OHZPU PZ UVUL_LJ\[P]L fees tiered based on whether they require Separately, the Moscow Exchange last JOHPYTHU VM 2=/ HUK WYL]PV\ZS` product Type, A, B or C. For example, week announced plans to migrate its core ZLY]LK HZ P[Z WYLZPKLU[ HUK *,6 Type A data for all instruments is available technology operations and co-location to a ^OPSL*VS[JOHPYTHU:PTVU/HZSHT for $1,500 per month or $15,000 for a new datacenter run by Moscow-based pro- PZHUVUL_LJ\[P]LKPYLJ[VYVM2=/ year, while Type B data for all instruments vider DataSpace over the next 18 months. 0UHKKP[PVUHZHYLZ\S[VM[OLKLHS is priced at $450 per month or $4,500 per The exchange currently runs its trading 2=/*,6;LK/PNHZL^PSSQVPU*VS[»Z year, and Type C data is available for all engines from datacenters in Moscow oper- L_LJ\[P]LJVTTP[[LL instruments for $50 per month or $600 ated by IXcellerate and Stack Group, but ;OL ]LUKVY ZH`Z [OL KLHS PZ per year. will adopt DataSpace as its primary data- L_WLJ[LK [V KLSP]LY HUU\HS Z`ULY Compared to historical data delivered center after an initial stage of using it as NPLZ VM Á TPSSPVU TPSSPVU via data vendors, the exchange’s data will the backup to its existing facilities next year I` ;OL [YHUZHJ[PVU ^PSS IL be more accurate, and can be used as a before completely migrating to the new M\UKLK [OYV\NO JHZO YLZV\YJLZ “golden copy,” Avetisyan says. “We have datacenter by May 2016. Once the Mos- HUK JVTTP[[LK IHUR MHJPSP[PLZ seen increased demand for more accurate cow Exchange migrates, the DataSpace HUK PZ Z\IQLJ[ [V [OL HWWYV]HS historical data, because often when market facility will host its trading, clearing and VM PUKLWLUKLU[ ZOHYLOVSKLYZ *VS[ data vendors take data from an exchange, depository technology platforms, as well as L_WLJ[Z[OLKLHS[VLUOHUJLLHYU when there is an overload, they conflate providing co-location space for exchange PUNZHUKJHZOMSV^PU the data so you can’t see all the orders, members. .P\SPH3HZHZNUP which is a problem for high-frequency Faye Kilburn
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