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Clear Path Analysis Finds that Despite Advances, Exchanges Want More from their Current Technology Infrastructures

Xignite

London -- Exchanges around the world are looking for new strategies to improve their technology infrastructures. Whether the objective is to manage transaction volumes, prevent trading failures, build market data revenue or meet competitive challenges, it is clear that exchanges must focus on the underlying technology that drives their businesses. In the Clear Path Analysis report, Global Exchange Technology and Data, released on Monday 25th June, leading exchanges take stock of their most pressing challenges and discuss how they are working to address them through improvements to their technology infrastructures. Technology issues affect the markets in a number of ways, and reliability is essential. For even the most advanced exchanges, well-known trading technology failures have generated reputational damage and heavy costs.  In addition to the importance of overall reliability, however, technology is also a critical competitive factor. Commentating in the report, Jean-Francois Delrieu, Head of Technology Partnerships, NYSE Euronext, states “One of the challenges we are facing is the need to create the capacity to innovate and improve the technology of our platforms to outperform the competition…we are aiming at constantly improving the platform, while keeping it stable for everyone to trade transparently and smoothly.” Highlighting the competitive advantages new technology can provide for exchanges around the world, Kersi Tavadia, Chief Information Officer, BSE (formerly Bombay Stock Exchange), explains how they have capitalised on these advances: “We have invested heavily into upgrading our technology, which allows us to increase our speed and keep pace with competitors in the West. As our exchange grows, we will continue to upgrade our technology.” Another top technology issue for exchanges is market data distribution. Exchange groups are looking for the most effective ways to build data revenue, broaden distribution, and serve the rapidly growing mobile application market. Hubert Holmes, Chief Business Development Officer, Xignite, said in the report “Exchanges are becoming more aware of growing demand from data consumers who want exchange data, but without the infrastructure or cost structure of legacy data distribution technologies.” For developing exchanges, the rise of cloud computing and other cost-effective technologies helps expand global reach and attract new liquidity. Commentating on this sector of the market, Holmes added “For developing exchanges, market data is an important asset for strengthening brand identity and attracting liquidity, but one of the challenges has been how to cost-effectively reach the market. This is where a cloud-based market data distribution capability is essential. When users only need a web browser and an internet connection, there is no geographical or technological barrier to your market data.” While the report by Clear Path Analysis shows that improving technology infrastructure is a necessary and critical priority for exchanges, the group also acknowledges the realities of regional regulatory frameworks and their impact. Eileen Muscat, Chief Executive Officer, Malta Stock Exchange, sums up the latest opportunities with: “Technology in itself facilitates, but does not provide the solution, and therefore the improvements in technology are only effective if the supporting legal, regulatory and operational and procedural framework actually supports an increase in business.” To obtain a copy of the Clear Path Analysis report on Global Exchange Technology and Data and/or speak with one of the commentators please email jessicamcghie@clearpathanalysis.com, call +44 (0) 207 936 935, or visit www.clearpathanalysis.com/reports/global-exchange-technology-and-data About Clear Path Analysis Clear Path Analysis is an impartial, independent publisher of high quality reports on pressing industry issues written by a cross-section of experts in the financial services, investments and pensions sector. Clear Path Analysis has a unique position in the market place- because of its model of using majority end users and buyers to contribute to high quality papers. Clear Path Analysis, established by Noel Hillmann in January 2010, is headquartered in London and has plans to expand into New York over the next two years, substantially growing its headcount. For further information, please visit www.clearpathanalysis.com

RECENT NEWS

Xignite, Inc., a cloud-based market data distribution and management solutions provider for financial services and technology companies, announced a new Vendor of Record service for clients subscribing to real-time and delayed market data. The new service vastly simplifies the administration and reporting required by exchanges and often eliminates the need to pay redistribution fees, potentially saving clients thousands of dollars a month.

As an approved Vendor of Record, also called a Service Facilitator, Xignite can redistribute real-time and delayed equities and options pricing data from Nasdaq, New York Stock Exchange (NYSE), Options Price Reporting Authority (OPRA), OTC Markets (OTCM), and the Toronto Stock Exchange (TSX). 

Adhering to the complex compliance guidelines required by exchanges is extremely difficult for investment advisers, financial advisers, or order management software providers that need to display real-time or delayed data. Each exchange has its own unique set of regulations and compliance requirements, and clients need to prove that they have control over who receives the data, in what format, and for what use case. Xignite’s Vendor of Record service eliminates the administrative burden of tracking these complex compliance requirements.

The new service utilizes Xignite’s cloud-native Entitlements and Usage Microservices to give firms complete control and transparency of their data consumption and usage. Xignite provides data entitlements, usage tracking, and exchange reporting across various data sets, users, and applications to ensure exchange compliance. Xignite’s new service sometimes eliminates the need to pay expensive redistribution fees. Exchange fees for display data, regardless of the number of users, can cost upwards of $10,000 per month. These high fees are especially difficult for smaller financial firms with just a few real-time data users.  

“Maneuvering through the maze of required compliance policies, entitlements, usage tracking, and reporting requirements, and being subjected to frequent audits is no easy feat,” said Vijay Choudhary, Head of Product for Xignite. “Xignite’s mission is to “Make Market Data Easy.” Today’s announcement is another step towards this. We are taking away the administrative burdens and complexity of licensing market data and allowing our clients the freedom to focus on their investment and trading strategies and building innovative products.”

Xignite’s Vendor of Record service is available for professional users with internal and display-only use cases. The service is available now as an add-on service for subscribers of our real-time and delayed equities and options pricing data APIs. These include:

XigniteGlobalOptions

XigniteGlobalQuotes

XigniteGlobalRealTime

XigniteGlobalRealTimeOptions

XigniteNASDAQLastSale

About Xignite

Xignite has been disrupting the financial and market data industry from its Silicon Valley headquarters since 2003 when it introduced the first commercial REST API. Since then, Xignite has continually refined its technology to help Fintech and financial institutions get the most value from their data. Today, more than 700 clients access over 500 cloud-native APIs to build efficient and cost-effective enterprise data management solutions. Visit xignite.com or follow on Twitter @xignite.

09/21/2021

Xignite, Inc., a provider of cloud-based market data distribution and management solutions for financial services and technology companies, today introduced XigniteGlobalETFs, a new Cloud API providing advanced analytical and full holdings data for exchange-traded funds (ETFs) globally. The popularity of ETF investing has been going through the roof and, in 2021, has broken all previous records. ETF data is critical to Xignite's digital investment manager (robo-advisor) clients, such as Betterment and SoFi, and our trading and brokerage clients, such as Robinhood and eToro, who offer their users collections made primarily of specially chosen, low-fee ETFs.

One of the prime reasons for the dramatic increase is that ETFs have become virtually free to buy and sell thanks to innovative Fintech solutions powered by Xignite market data. Robo-advisors such as Personal Capital, SoFi, Wealthfront, and WealthSimple have helped make ETFs extremely popular as an easy, low-cost way to diversify their members' portfolios.

Zero-cost trading stock brokers like Robinhood have attracted investors that use ETFs as trading vehicles. As the ETF landscape evolves, it continues to democratize hard-to-access trading strategies for retail investors. This dramatic expansion, and the complexity of the ETF landscape, make it critical for our clients to have institutional quality data to integrate into their ETF-focused financial software and mobile applications. 

The new API offers daily and historical coverage of all listed ETFs in North America, Europe, and the largest Asian markets. Sourced from CFRA Research, one of the world's largest independent investment research firms, users can analyze underlying constituents across ETFs to quantify and compare sector, factor, and other risk exposures. The Xignite's Data Quality team cross-validates the ETF data across sources and proactively detects and fixes any missing information. 

"Inflows to ETFs have already set an annual record in 2021," says Vijay Choudhary, Vice President of Product Management for Xignite. "It is critical for our wealth management, trading, risk analysis, hedge fund, and other Fintech clients to have access to in-depth research on the ETF industry to make informed decisions on behalf of their clients," added Choudhary.

Xignite APIs are cloud-native and offer a robust selection of use case-based endpoints. These endpoints are ready-to-use pieces of code that developers can easily integrate into their product or app, regardless of type, amount, or frequency of data, without the need for any complex integration logic. The available XigniteGlobalETF endpoints are:

GetHoldings - Returns all holdings sorted by percentage portfolio weight for the specified date.

GetETFCharacteristics - Returns characteristics for one or many ETFs for the specified date.

GetVolatilityStatistics - Returns average volume and volatility at the specified date.

GetFundFlows - Returns fund flows for selected ETFs.

GetFundFlowsRange - Returns fund flows for a selected ETF across the specified time range.

GetHistoricalNAVs - Returns the historical NAVs for an ETF based on a start date and end date.

GetNAVs - Returns the closing NAV for one or more ETFs for the specified AsOfDate.

GetTrailingReturns - Returns trailing returns for one or many ETFs for the specified date.

SearchETFs - Returns a list of ETFs that match the search parameters.

 

About Xignite

Xignite has been disrupting the financial and market data industry from its Silicon Valley headquarters since 2003 when it introduced the first commercial REST API. Since then, Xignite has been continually refining its technology to help Fintech and financial institutions get the most value from their data. Today, more than 700 clients access over 500 cloud-native APIs and leverage a suite of specialized microservices to build efficient and cost-effective enterprise data management solutions. Visit xignite.com or follow on Twitter @xignite.

08/03/2021

Xignite, Inc., a provider of market data distribution and management solutions for financial services and technology companies, today revealed the results of its collaboration with Neeva, the world’s first ad-free, private subscription search engine. Neeva has built features to deliver information in a more user-friendly manner to a general audience. One new feature is a stock tracker, enabling users to look at stock prices based on different time intervals and other key data points. The stock tracker is powered by Xignite financial data. Click HERE to download the case study containing the full results.

Neeva’s stock tracker requires significant quantities of high-quality market data to function. The company initially enlisted a legacy data provider but quickly ran into issues with data and API quality. Neeva needed to integrate quickly and required fast and reliable financial data. After a trial and receiving a recommendation from another client, Neeva identified Xignite as a provider capable of delivering large quantities of market data in a comprehensive and developer-friendly manner. 

“We were impressed by Xignite and committed to them following a successful trial,” said Stephanie Chang, Head of Marketing at Neeva. “The main factors that drew us to Xignite were the consistency of their stock ticker coverage and the granularity of their time-series ticker data, as well as the speed and reliability as well as the speed and reliability of their API,” added Chang.

Integration of the Xignite financial data APIs into Neeva’s stock widget took less than two weeks, and Neeva noticed immediate results in terms of breadth, detail, and API quality. Powered by Xignite’s global quotes and global historical APIs. Neeva presents its users with rich and desirable views of key data points for a huge variety of stocks. Users can use a time-based filtration mechanism to drill into metrics like open price, daily highs, and lows, 52-week highs and lows, volume, and market cap. 

“Xignite’s vision is to Make Market Data Easy. With our industry leading technology combined with Neeva’s user friendly search engine we have done just that,” said Stephane Dubois, CEO and Founder of Xignite. “We look forward to continuing our work with Neeva as they disrupt the search engine marketplace.” 

About Xignite

Xignite has been disrupting the financial and market data industry from its Silicon Valley headquarters since 2006, when it introduced the first commercial REST API. Since then, Xignite has been continually refining its technology to help fintech and financial institutions get the most value from their data. Today, more than 700 clients access over 500 cloud-native APIs and leverage a suite of specialized microservices to build efficient and cost-effective enterprise data management solutions. Visit http://www.xignite.com or follow on Twitter @xignite

About Neeva

Neeva is the world’s first ad-free, private subscription search engine. Neeva focuses entirely on the consumer, delivering only real, high-quality, trustworthy results. Neeva blocks third-party website trackers and will never sell or share customer data with any third party, especially advertisers. Neeva also makes it easy to search within personal email accounts, calendars, and cloud storage platforms surfacing the most important information from the same familiar search box. Neeva was founded by former executives from Google and YouTube. Learn more and sign up at Neeva.com.

07/15/2021

Xignite, Inc., a provider of market data distribution and management solutions for financial services and technology companies, announced today it has enhanced the data coverage for its’ interbanks and interest rates APIs in preparation for the required transition from the London Interbank Offered Rate (LIBOR) benchmark interest rate at the end of 2021.

Used in financial products such as adjustable-rate mortgages, consumer loans, credit cards and derivatives, LIBOR has been the world's most widely used benchmark for short-term rates. But after the 2008 financial crisis the U.S. Federal Reserve recommended a new benchmark interest rate to replace the outdated and problematic LIBOR. In the U.S market the new benchmark is Secured Overnight Funding Rate (SOFR), which is based on transactions in the U.S. Treasury repurchase, or repo, market, where banks and investors borrow or lend Treasuries overnight. Other countries are introducing their own local-currency-denominated alternative reference rates for short-term lending.

Xignite banking, and Fintech customers that build apps for capital markets, investment management, financing, and foreign currency exchange purposes, require interbank and interest rates data to manage exchange and interest rate risk. Xignite enhanced its Interbanks and Rates APIs with SOFR earlier this year and has now added four of the alternative overnight risk-free rates (RFRs) recommended to replace LIBOR for currencies in respective markets. The new rates include Euro Short-Term Rate (ESTR), Swiss Reference Rates (SARON), Sterling Overnight Index Average (SONIA), and Tokyo Overnight Average Rate (TONAR). These additional rates are available now at no additional cost to customers.

“Our rates and InterBanks APIs were the first REST APIs ever released to serve the needs of the lending and banking industries. They uniquely aggregate rates that are used by dozens of firms globally in critical business processes,” said Vijay Choudhary, Vice President of Product Management for Xignite “Given the major shift the industry is experiencing regarding reference rates, it was critical for us to support those new rates to give our clients the data they need to run their businesses,” added Choudhary.

Xignite’s Interbanks API offers real-time and historical interbank and deposit rates for currencies in 40 countries. Xignite’s Interest Rates API provides interest rate data for over 600 global treasury, money market and private capital market instruments and benchmarks. The new alternative T+1 (24hr+ delayed) rates include:

  •         Europe: Euro Short-Term Rate (ESTR) is an interest rate benchmark that reflects the overnight borrowing costs of banks within the eurozone. The rate is calculated and published by the European Central Bank.
  •         Switzerland: Swiss Reference Rates (SARON) represents the overnight interest rate of the secured money market for Swiss francs (CHF). The rate is calculated and published by SIX.
  •         United Kingdom: Sterling Overnight Index Average (SONIA) is the effective overnight interest rate paid by banks for unsecured transactions in the British sterling.
  •         Japan: Tokyo Overnight Average Rate (TONAR) is an unsecured interbank overnight interest rate and reference rate for the Japanese yen. The rate is calculated and published by the Bank of Japan.

About Xignite

Xignite has been disrupting the financial and market data industry from its Silicon Valley headquarters since 2006, when it introduced the first commercial REST API. Since then, Xignite has been continually refining its technology to help fintech and financial institutions get the most value from their data. Today, more than 700 clients access over 500 cloud-native APIs and leverage a suite of specialized microservices to build efficient and cost-effective enterprise data management solutions. Visit http://www.xignite.com or follow on Twitter @xignite.

06/09/2021