Exchanges Forge Ties With Tech Providers
Exchanges are forging ties with technology providers as they seek to expand their revenue models to encompass market data, connectivity, and post-trade services.
These services, once considered ancillary to an exchange’s listings business, now contribute a healthy percentage of top-line numbers.
“There are several different areas where exchanges are focused on technology innovation,” said Steve Woodyatt, CEO of Object Trading.
“Two where I think they see fertile ground are clearing and cross margining,” Woodyatt said. “I also see a lot of lateral trading facilities and cross networks looking at creating somewhat less traditionally regulated spaces to compete with those that are currently cannibalizing their current market space. The technologies there are less about traditional technologies and more about product innovation and being able to capture flow that is margin efficient.”
NYSE Euronext’s Power Partners Program, highlights vendors that partner effectively with NYSE Euronext to better serve mutual customers and provide high levels of functionality, responsiveness and innovation.
Inclusion in the Power Partners Program is based on customers’ usage of NYSE Euronext markets and NYSE Technologies data, products and services.
The program is currently available to U.S. data vendors, broker-dealers, retail broker-dealers, order management systems, execution management systems, broker systems, service bureaus and technologies distributors and resellers.
Power Partner designations range from one to three portals; the more criteria met, the higher the number of portals and the greater the marketing rewards for the Power Partner. Marketing rewards include varying levels of advertising opportunities, visibility at Trader Forums, public relations, and recognition on NYSE Euronext websites.
NYSE Technologies, the commercial technology arm of NYSE Euronext, has opened up its data centers to third-party network providers and vendors, allowing for the first time for them to offer their services within NYSE Technologies’ two data centers in Basildon, just outside London, and Mahwah, N.J.
NYSE Technologies’ network, called Secure Financial Transaction Infrastructure (SFTI), offers customers in Europe, Asia and the U.S. access to all NYSE Euronext markets and a host of 3rd party venues, content and services.
NYSE Technologies has also launched plans to build and operate a SFTI Access Center at the Equinix NY5 data center in Secaucus, N.J.
“Given the breadth of global customers Equinix serves, we are often asked to provide guidance to customers on accessing the key financial venues,” said Lance Homer, senior manager, financial markets at Equinix.
In the New York market, access to the SFTI Network is often the chief interest for customers when making their co-location decisions.
“They want to understand the choices in terms of latency, cost and diversity,” said Homer. “Being able to directly cross-connect to the SFTI network allows Equinix customers to reduce their network infrastructure and provides them with a resilient solution and scalable bandwidth without the increasing cost trajectory to get to SFTI.”
Offering scrapes public quotes to create firm prices.
The firm has slated three more block trading solutions for MiFID II.
A new algorithm splits a difficult currency trade into two more liquid ones.
TradeSmart platform will include Legger, a fixed income and futures algo from Quantitative Brokers.
FX traders needs more transparency and tools to deal with venue fragmentation.