News

Migrating Market Data to the Cloud

klangstaff@xignite.com

Finextra - Market data is the lifeblood of financial institutions (FIs) with banks, brokers, wealth managers, asset managers and hedge funds relying on quality pricing and trade-related data to power their business applications. But today customers expect to access to data on their personal devices and FIs are stepping up their digital transformation game.

Developers are demanding easier access to this data for app development, data usage is increasing, C-level executives are calling for enterprise-wide modernisation and slashing costs, and vendors and regulators are issuing complex auditing requirements. The cloud may provide the FIs with much needed relief.

Feeling pressure from all sides, some FIs are starting to move away from the traditional methods of on-premise storage and distribution of market data and migrating data storage away from their legacy data centre and moving their market data to the cloud. The cloud simplifies and accelerates access to data, eases data management, and enables advanced analytics - without the need for heavy infrastructure costs.

Finextra spoke to Stephane Dubois, CEO and founder of Xignite, who highlights that digital transformation is being driven by consumers, because they are using mobile devices to access their financial information online. However, he goes on to say that regulators are not driving digital transformation but are attempting to figure out how to cope with the management of digital data.

A recent Xignite report also details a significant shift in the financial services industry from storing market data on-premises and moving it to a cloud environment. Powerful cloud APIs are the delivery mechanisms for how that data is then distributed to the various within an organisation and even externally, to customers on their mobile devices.

Being able to access financial data from the cloud allows FIs to innovate in a similar way to fintech firms. Dubois points out that the cloud allows you to quickly build innovative solutions to meet your clients’ evolving needs. Distributing financial data from the cloud can free you from the constraints of hardware and software so that you may create, deliver, and scale applications globally, touching millions of users and devices. It is imperative that FIs understand their new relationship with data.

The call of on-demand

Despite previously being heavily dependent on the data centre, traditional FIs are being encouraged to migrate their core banking infrastructure to the cloud and use or deploy APIs that are beneficial to them, enabling them to reduce cost while driving innovation.

Dubois highlights that “cloud APIs offer much more scalability than APIs. APIs were first used more than 10 years ago as an easy way to get data, but firms were still copying the data over and storing it in their own environments. With cloud APIs, they’re so powerful and scalable that you don’t need to store the data, you can now use the cloud as your backend market data infrastructure.”

This also meets the need of the digitally-savvy customer, who is accustomed to their products and services being on-demand and available when needed. “The whole premise of the market data industry has always been replication of data,” Dubois says. “Market data was built around firms building this infrastructure, but now you can just consume it on-demand so you don’t need this infrastructure anymore.

“It means you have the opportunity to migrate your market data infrastructure to the cloud, so essentially get rid of your infrastructure and start consuming data, analysing data and everything you do with data in the cloud. That’s why it matters.”

Redeploying resources for innovation

APIs help to drive innovation through the establishment of new digital channels. This allows traditional FIs to compete with startups and leverage cloud-enabled emerging technologies, namely AI and analytics.

Dubois explains: “With legacy technology, you would spend 90% of your budget dealing with the infrastructure, getting the data together and 10% left to be able to innovate. Now, we can access this data very easily and you can really build new user experiences, new analytics, even new AI systems and models with the data.”

Most fintech startups do not struggle with migration because they are not burdened by legacy infrastructure - as Dubois points out, “they start with nothing, so they don’t have this issue of migration as much, but some do so it’s still relevant for the industry at large.

“Cloud APIs enabled fintechs and without them, they would have had to spend a lot of time building legacy and not use APIs. If they had to use legacy, they would have spent a lot of time and money on it, and not spent on innovation.”

The API design

Cost is also an important factor here, especially because cloud storage and distribution can lower the total cost of ownership. “You don’t have to acquire this infrastructure, you don’t have to maintain it, you don’t have to pay people to maintain it, because now you are using a mutualised infrastructure in the cloud. You pay for what you need and you can scale when the market heats up and you can downscale when the market is slow or closed, therefore your costs go down quite dramatically,”

Read the report here.

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Xignite Market Data Cloud Platform

Xignite Market Data as a Service was one of the first market data services built to run in AWS and they are one of the few vendors that is an AWS Advanced Technology Partner with a Financial Services Competency.

With more than a decade of cloud expertise in building, scaling and operating cloud-based market data technology, it is no surprise that leading financial services and capital markets firms rely on this company to empower their journey to the cloud. Their Metals API Service offers real-time prices and quotes for metals including Gold, Silver, Palladium, Platinum and other base metals. In addition to real-time precious metals prices, the service provides daily London Fixing prices as well as historical precious metal prices and metal news. 

Xignite Cloud APIs are sourced from leading providers such as FactSet and Morningstar as well as Xignite’s own curated, high-quality data.

Read the article Top 3 Alternatives for Barchart Precious Metals Rates

02/25/2021

Each year, Bobsguide asks the market to vote for fintech companies they believe stand out from the competition – those who have gone the extra mile in terms of development and servicing their clients. Xignite is proud to be listed as the "Best API Management" vendor on the Bobsguide 2020 Rankings.


Read article on Bobsguide

01/26/2021

Web services data provider Xignite captured the AFTAs judges’ attention on the infrastructure front with its release of Xignite Enterprise Microservices in July 2020, a suite of cloud-based microservices for data management, storage and distribution in the cloud, designed to help financial firms migrate from monolithic legacy data architectures to more agile and less expensive cloud services and data sources.

Requires subscription to read the article on WatersTechnology

01/25/2021

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 StockCharts, a leading technical analysis and financial charting platform for online retail investors. The collaboration involved a move from an on-premise market data provider to Xignite’s cloud-native technology hosted in Amazon Web Services (AWS). Download the case study containing the full results.

StockCharts requires vast quantities of financial data to power its visualization, charting and tracking tools, which investors use to analyze the markets to help with investment decisions. The company was frustrated by the limits of its on-premise market data center, which was forcing the team to make architectural decisions based on what its data center could handle in terms of speed and storage, not on their technology. Its previous market data provider was just starting to build out some cloud offerings, but they were far away from what the business required. StockCharts decided to migrate its infrastructure to the AWS cloud and partner with Xignite to gain access to endlessly scalable market and financial data delivered through innovative cloud APIs.

The collaboration made an immediate impact as StockCharts was able to expand its offerings and customer base by pursuing growth strategies enabled by Xignite’s cloud-based approach, which provides easy access to data and eliminates architectural limits on storage and speed.

The pandemic provided further validation. Seattle-based StockCharts was in one of the first areas hit by COVID-19 and was forced to quickly shut down its office. Pandemic-driven market volatility followed and StockCharts customers wanted to visualize what was happening. The company’s ability to scale quickly and accommodate a high volume of new requests would not have been possible without Xignite.

“The move to the AWS cloud and Xignite has unlocked tremendous new potential for us in a lot of architectural ways, and has given us a lot of data options that we could not even consider before,” said Grayson Roze, Vice President of Operations at StockCharts. “It relieved us of the burden of figuring out how to source things. Instead, we know exactly where we need to go to get the data and can access it instantly. That is a huge, huge benefit for our business.”

“We are proud to have played a role in transforming how StockCharts approaches data,” said Stephane Dubois, CEO and Founder of Xignite. “The events of this year unleashed a massive spike in retail trading and a host of other unexpected forces that reinforced the need for financial services firms to leverage the cloud. Despite the disruption of this year, StockCharts was positioned for success, and we look forward to continuing to deliver our financial and market data solutions to the industry at large.”

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-delivered modules to build efficient and cost-effective enterprise data management solutions. Visit http://www.xignite.com or follow on Twitter @xignite

01/12/2021