Financial Market Data Web Services – Xignite Blog

The was plenty of market data cloud buzz at the 2010 SIFMA Technology Conference and Exhibition with NASDAQ and Xignite right in the center. Using the XigniteOnDemand Market Data Cloud Platform, NASDAQ plans to launch Data-on-Demand in the second half of 2010 to provide easy and flexible access to large amounts of detailed historical NASDAQ Level 1 trade and quote data for all U.S.-listed securities. Tick data is increasingly in demand for back testing of algorithmic trading strategies as the securities industry pushes the limits of high frequency trading.

Randall Hopkins, NASDAQ OMX’s Senior Vice President of Global Data Products, is quoted in the press release as saying: “Today our customers spend a large amount on technology infrastructure, not the market data itself. With Data-on-Demand, we want to drastically cut data management costs by running the technology infrastructure on the cloud for our clients and delivering to them the data they need, when they need it, and how they need it.”

NASDAQ discusses it’s market data cloud initiative with Max Bowie
of Inside Market Data at the 2010 SIFMA Financial Services Technology Expo

Obtaining and collecting tick data can be onerous and time-consuming as firms are required to establish feeds and maintain large amounts of data on-hand. On-demand market data distribution gives applications a way to cherry pick the specific subset of data that the application needs with pinpoint accuracy. Instead of combing through very large data sets of historical tick data, developers will be able to program their applications to select very specific data sets and obtain them on-demand and process them instantly. Data-on-Demand will also allow clients to download large tick data subsets on a scheduled basis.

We’re proud to announce that CME Group, the world’s leading and most diverse derivatives marketplace, is jumping on the cloud computing bandwagon and has agreed to use the XigniteOnDemand market data cloud platform to deliver OTC data from the cloud.

Brian McElligott, Managing Director of Information Products at CME Group is quoted in the press release as saying “With the ongoing development of our multiple OTC product and service offerings, and the need to deliver this data to customers with continued market transparency, the Xignite platform will be a quick and cost-effective way to get OTC pricing and reference data to our global market participants.”

Pete Harris of the A-Team Group interviews CME Group, BG Cantor and Xignite.
The A-Team Group gave the cloud prime coverage in their recent Q2 issue,
and Pete is launching a new “Market Data Cloud” channel, so stay tuned to that.

CME Group plans to offer on-demand access to end-of-day OTC settlement, volume and open interest data to support markets available through CME ClearPort®, a set of flexible clearing services open to OTC market participants to substantially mitigate counterparty risk and provide neutral settlement prices across asset classes. CME ClearPort currently clears more than 500,000 contracts daily, including Credit Default Swaps (CDS), energy, metals, agricultural commodities and foreign currencies. The service brings together more than 10,000 global users across the world including banks, hedge funds, trading entities, Inter Dealer Brokers (IDBs), Future Commission Merchants (FCMs), and clearing firms.

Now that the cat’s finally out of the bag on BGCantor’s new on-demand web services, I can finally take the readers of the Xignite blog back stage for a “behind the scenes” look at the making of the biggest initiative in the on-demand financial web services world since the start of Xignite.

BGCantor On-Demand offers fixed income and derivatives data via on-demand web services using Xignite’s core platform.

What happened behind the scenes?  How did this new on-demand business get launched?  And what did it take to launch it?  Well, first and foremost, it took a great team at BGCantor Market Data.  The BGCantor team was absolutely delightful to work with.  Everyone was highly knowledgeable, very responsive, dedicated to accomplishing the mission and very excited about the whole project.  We couldn’t have asked for a better group to work with.

Together, the BGCantor/Xignite team started by designing web services to be truly application-ready, combining Xignite’s web service experience with BGCantor’s in-depth market data knowledge.  Then we coded the web services on top of the XigniteOnDemand market data distribution platform for rapid development on a robust, high-performance, highly scalable architecture.  At the same time, we also built the BGCantor On-Demand website and tightly integrated it with the web services themselves.  To help manage the new on-demand business, we also deployed an administrative portal for on-going management of customer accounts.  At the same time, on the sales and marketing front, we worked together to find just the right usage-based pricing model to drive strong revenue growth for BGCantor while also delivering exceptional value for BGCantor’s customers.  Then we collaborated on developing marketing collateral and sales tools.

As for showing you blooper videos of our behind-the-scenes footage, I’m afraid I couldn’t quite convince Legal to sign off on that. Sorry. Maybe next time.

This is my favorite time of year.  Snow, Christmas lights, family, friends, parties . . . Ahh, the holiday season is officially upon us.  One of my absolute favorite aspects of the holidays is sharing warm wishes and good times with friends, family, co-workers and strangers alike.

Last week, we shared some of that holiday cheer at the Xignite Meetup in NYC.  It was a perfect event, with over 40 customers, supporters and friends braving the cold to come out and enjoy drinks, darts and good times with some of the crew from Xignite.  We would like to thank everyone that came out to celebrate the season with us.  I have posted a small photo gallery of the meetup for your viewing pleasure (iPhone quality).  Also, a special thanks to the crew at Stout NYC, a great place to host a Social Meetup. Read more

I really liked how Max Bowie characterized Xignite as “disruptive” in a piece he published in Inside Market Data earlier this week, entitled “Appetite for Disruption.” He was covering our latest release of equity options web services XigniteOptions and XigniteRealTimeOptions, but his “disruptive” moniker couldn’t be more appropriate for all of Xignite as a company.

He dubbed us as “disruptive” because our equity options services changed the economics of getting options data so much that customers like iVerit are now able to create new businesses delivering this high-volume, high-expense market data at rates affordable even to small private investors over small, affordable devices like the iPhone.

But the truth is that virtually every time we launch a new web service, we see this pattern of disruptive technology creating new opportunities to penetrate existing markets much more deeply. That’s because it’s the on-demand delivery model itself, not any particular web service, that creates the order-of-magnitude changes in economics that cause disruption and new opportunities to deepen existing markets.

So thanks to Max for giving us a rep as a high-tech company running amok causing market depth and disruption wherever we go.

With 2010 quickly approaching, we wanted to celebrate the holidays with our friends & partners in the NYC Area. Join the Xignite crew for some good food, great drinks and special holiday gifts.

Hang-out with Xignite CEO Stephane Dubois and a handful of other Xignite’rs at Stout NYC, Thursday December 17th from 5:30p to 7:30p. We will be located in the Dart Alley Area of Stout’s Cellar.

While everyone that attends will be hooked up with the latest Xignite gear (shirts, USB’s, shot glasses, etc.), the first ten people to arrive will receive a very special gift pack, worth $50 each. We look forward to enjoying great food, cold beers and a quick dart shootout with our friends & partners in NYC.

Everyone has been talking about how much smaller this year’s SIFMA Technology Management Conference was when compared with previous years, fewer exhibitors and fewer attendees.  But for Xignite, this year’s show was the biggest ever. If you missed us at this year’s SIFMA TMC, we hope to see you next year. Feel free to take a look at the 2009 Xignite SIFMA TMC Photo Gallery by Clicking Here.

Despite the fact that this year’s SIFMA Show was scaled down quite a bit, we were positively overwhelmed with demand at the Xignite booth.  Our staff of seven was slammed every minute they were on the floor, answering questions, giving product demos and handing out free Xignite goodies.  Even after show hours were over, our booth stayed filled with people wanting to talk about on-demand web services.  Even when walking the halls, I overheard many others talking about Xignite, our cool new products and exciting activities that we were sharing at the show.  In retrospect, I wish we had brought a staff of twelve to handle all the demand.

Maybe it was just the Xignite shot machine and free booze we passed out. For me, it was fun demonstrating how it’s a lot easier & cheaper to get data “by the glass” (aka on-demand) rather than getting data “by the fire hose” (aka bulk files and data feeds).  If it was alcohol that brought the hordes a-knocking at our booth, that would give a whole new meaning to the phrase, “generating buzz.”

Or maybe we saw so much demand because people just couldn’t resist the power of our free t-shirts, pens, mouse pads and other freebies.  Maybe it was the awesome VIP Event that we hosted at the Forbes Galleries. Or perhaps everyone heard about us from the recent publicity surrounding Xignite, like the amazing coverage in Inside Market Data or product announcements surrounding XigniteOnDemand and XigniteCorporateActions.

In truth, I don’t think any amount of publicity, bribery or booze could have generated the amount of buzz we saw.  Having talked to many at the show, I got a strong sense that people are more serious than ever about finding game-changing technology, like on-demand web services.  Over and over again I heard people looking for way to simplify data projects, dramatically cut costs and reduce the time it takes to delivery new data initiatives to market.  In these categories, Xignite is the only show in town.