Demand is being driven by requirements for high-performance, fully managed data services.
European analytics providers are expanding their services with the help of U.S.-based data providers.
Activ Financial is providing Intelligent Financial Systems (IFS), a London-based research and market data analysis company, with U.S. equity market data to drive research and analytics for its LiquidMetrix WorkStation product suite and new coverage of North American markets.
Activ responded to LiquidMetrix’s need for comprehensive, direct data from an FTP, showcasing Activ’s ability to provide its clients with customized services beyond its bread and butter low latency, real-time products.
The agreement combines IFS LiquidMetrix’s research and analytics with Activ’s data will to drive trading decisions around the world. “We are bringing our data to the European trading community through our partnership with IFS LiquidMetrix,” Dane Thacker, sales director, EMEA, at Activ Financial, told Markets Media.
Demand for low-latency data is increasing in Europe as new regulations, such as MiFID II, take shape.
Since launching its European operations in 2009, Activ, a global provider of fully managed low-latency market data solutions, has established a comprehensive user base and added over 20 clients from across the region this year.
Saxo Bank is utilizing Activ’s global exchange traded options market data offering to source prices for its online listed products trading operation.
Another customer, IG Index, a spread betting company, selected Activ for its lower latency throughput in providing OPRA data. Since choosing Activ, the company’s OPRA data latency has been dramatically reduced, leading to a higher performing trading environment, the company said.
The European Commission’s proposals on Markets in Financial Instruments Directive (MiFID II) extend the original MiFID’s scope far beyond equities to require that OTC derivatives be traded on central exchanges.
They also define a new category of organized trading facility (OTF), broadly defined to capture all types of organized execution and arranging of trading—such as broker-operated dark pools and crossing networks–that don’t correspond to the functions of existing venues.
Strong data is the key to driving research and analytics, making partnering with a leading provider a core component of IFS’ expansion into North America.
“Our clients come to us for precise and accurate benchmarking information and Activ was an obvious choice to supply the U.S. equity market data considering their position in the US.. market,” IFS said in a statement.
The traditional industry approach for direct feeds was to source exchange feeds, implement a large software infrastructure and then either write feed handler software yourself, or make a large software purchase from a vendor.
Activ employs a hosted direct feed model, offering the same direct-feed technologies in a deployed solutions that are now hosted inside of its managed data centers. These shared or semi-dedicated environments allow customers to focus on their business while getting a managed and cost efficient solution for data, said Thacker.