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Opening Cross: Digging for Gold in the Data Sandbox

Xignite

Article by Max Bowie, Inside Market Data

The emergence of "sandbox" organizations and development environments are fostering a climate of innovation.

As a child, one of my friends had a sandbox in his garden. At first, this was a pristine environment, where all the kids longed to play, and would share their toys, digging and frolicking in the sand, basically experimenting with new textures and activities. But over time, the novelty soured as kids focused on their favorite toys, as parents withdrew their children because of other kids’ (lack of) personal hygiene, and eventually the remaining toys became rusty, weeds overgrew the sand, and the neighbor’s cat began using it as a king-size litter box.

In the data world, a sandbox represents pretty much that same philosophy—call it experimentation through plug-and-play—with organizations creating environments designed to nurture innovation, where developers have access to everything they need to create next-generation data services, from easily accessible datasets to connectivity and hosting, all generally at preferential rates or entirely free of charge. 

Then there are also initiatives like the aptly-named FinTech Sandbox or New York Fintech Innovation Lab, which offer a formal program of subsidized services and structured mentoring by experienced fintech executives. For example, web services data provider Xignite is providing APIs for accessing market data free of charge to nine FinTech Sandbox participant startups, three of which demonstrated solutions leveraging Xignite’s data at last week’s FinTech Sandbox Demo Day.

“A lot of developers coming out of school don’t really know the financial industry, and data is expensive. So the idea [of sandbox initiatives] is to reduce friction and provide data and so on free of charge for six months for testing,” says Dinesh Chheda, advisory board member and data executive in residence at FinTech Sandbox.

But sandboxes aren’t just for complete newcomers: Swedish market data vendor Millistream has launched its Millistream Sandbox, a test environment that allows clients to experiment with delayed data from its products in an unashamed attempt to get them “hooked” on Millistream’s data and delivery mechanisms. Because Millistream does not require Sandbox users to sign contracts, users are not restricted to how they can use the data within the broad condition that it be used for testing purposes, or for how long they must subscribe. So if the client tests something that doesn’t work out, they can move on and try out something else without having to continue paying for something they no longer use.

The participation of vendors and founder sponsors who are willing to subsidize—or eat entirely—the cost of market data is key, because it legitimizes the model of free or affordable tiers of data delivery, and points the way to a more flexible model for data licensing; and importantly, flexible yet standardized, so that it ultimately becomes easier to gain buy-in for new models from across the industry.

More often than not, exchanges are cast as the bad guys of data licensing and fees. However, some exchanges like Deutsche Börse are already taking it on themselves to support the next wave of financial technology and data newcomers, using their extensive infrastructures and datacenters to host and support startups with limited resources, and to help them connect—both in terms of data connectivity and from a business partner perspective—with other data sources and service providers.

The enormity of the task facing financial firms to not just update their infrastructures and applications, but implement the requisite architecture to support true Data-as-a-Service delivery means that, as Chheda says, firms will need to enlist those innovative startups—in which case, the spirit of innovation and the fee tiers that support it may become more pervasive, more standardized, more accepted, and more common across other areas of business, perhaps ultimately enabling truly open, plug-and-play and pay-as-you-go data platforms, which is what consumers have been requesting for a long time. 

Source: Inside Market Data

RECENT NEWS

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

Xignite, Inc., a provider of cloud-based market data distribution and management solutions for financial services and technology companies, today introduced XigniteGlobalCorporateActions, a new advanced API providing detailed corporate actions data for events such as stock splits, dividends, mergers, and spinoffs. The COVID-19 pandemic has led to a dramatic increase in corporate actions, annual meetings canceled, dividend payouts suspensions, and an accelerated company mergers and acquisitions rate. Knowing when a company plans to offer a split or undertake an acquisition is critical for buy-side and sell-side firms.

Corporate action processing is one of the “last frontiers of pain” for investment management, and one of the most manual and complex parts of back-office operations. The lack of uniformity and standards makes it difficult to identify and interpret information correctly. Obtaining accurate and timely information is challenging, and errors can result in painful financial losses. The XigniteGlobalCorporateActions is the first cloud-based REST API to eliminate the pains and complexity caused by legacy data feed and files. The API provides a single-source data stream with consistent information gathered from more than 190 exchanges and over 30,000 U.S. mutual funds.

The recent split of TSLA and AAPL stock on the same day illustrates the complex and far-reaching impact of corporate actions. If a firm does not do this correctly, it will show on historical charts, and their customers will notice. Xignite’s Data Quality team cross-validates our corporate actions data across sources and proactively detects and fixes any missing information. This prevents missing issues such as the TSLA and AAPL splits.

“The industry is facing a ‘perfect storm’”, says Vijay Choudhary, Vice President of Product Management for Xignite. “On one hand you have a massive wave of corporate actions fueled by the pandemic and the rising markets, and on the other you have millions of new retail investors eyeballing their investment applications all day long. One bad corporate action can send your customer service department into a tailspin,” added Choudhary. Additional detail on the Corporate Actions API endpoints:

GetDistributions - Returns cash and stock dividends as declared by the company for a requested security and date range.

GetDistributionsByExchange - Returns cash and stock dividends as declared by the company for a requested exchange and date.

GetEventSummaries - Provides a high-level overview of events for a requested security and date range.

GetMergers - Returns merger events for a given identifier and date range.

GetSpinoffs - Returns spinoff events for a given identifier and date range.

GetSplits - Returns the stock split history for a security for a specified date range.

GetTakeovers - Returns takeover events for a given identifier and date range.

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

05/18/2021

In the foreign metal market and the world of international rates, currencies play the crucial role of acting as the medium of exchange in the transactions that take place.

Currencies like the United States dollar, the Euro, or the British Pound are commonly used around the world in order to get a metal rate. Some companies that offer precious metal live and historical rates have exposed their APIs (Application Programming Interfaces) to allow developers to integrate current and historical metal rates, currency conversion, or other capabilities into their applications.

In order to know about precious metals live and historical rates, there’s a lot of APIs available online, and if you want to try one, Barchart is going to be one of your first options. But if you take a look at what else is in the market, you’ll find alternatives so many great alternatives:

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