Low-latency data provider Activ Financial is expanding its global data feed coverage to include 10 new Asian exchanges in response to demand from customers for normalized market data from the region.
Over the past four months, the vendor has established co-located or proximity-hosted points of presence at various exchanges in the region, including Bursa Malaysia in April, the Stock Exchange of Thailand and the Thailand Futures Exchange in May, the Indonesia Stock Exchange in June, and the Philippine Stock Exchange in July, and plans to build out presences at the Shanghai Stock Exchange, the National Stock Exchange of India, the Bombay Stock Exchange and Taiwan Futures Exchange by the end of the year.
Activ president Frank Piasecki says the vendor has a strong track record covering the primary exchanges in the region—most recently deploying its hardware-accelerated ticker plant in the Japan Exchange Group’s (JPX) co-location facility to provide access to cash and derivatives data from the Tokyo Stock Exchange and the Osaka Securities Exchange—but that the latest expansion is in response to a growing demand from the vendor’s existing customer base for data from Asia’s secondary markets, as market structures change and local exchanges continue to develop their own electronic trading capabilities.
“For example, India is changing from regulatory point of view. The investing public can now invest outside of India,” Piasecki says. “Deregulation in the market structure is facilitating new exchanges, and… there are some interesting derivative products that some exchanges are trying to produce in partnership with India. These are all good reasons for a market data vendor to be in the country to aggregate, normalize and consolidate these sources.”
Establishing initial connectivity has proven relatively straightforward, as many of Asia’s secondary markets matching engines developed by mainstream exchange platform providers such as Cinnober, NYSE Technologies and Nasdaq OMX—all of which Activ already connects to for sourcing data from their home markets, Piasecki says. “The bigger challenge is getting robust, reliable connectivity. That’s never easy in smaller markets, no matter where you are in the world… but [Asia’s] economic vitality and dynamism are going to force people to interact with real-time data services,” he adds.
Activ’s distributed processing architecture means the vendor can process data at or close to each data source before distributing it. “Our model allows us to produce two kinds of feeds—a super-low-latency normalized feed, which we distribute locally, and a global consolidated feed, which enables firms to access data from 200 exchanges via a single API,” he says.