Demand from Prime Analytics' global client base for niche regional markets will give Activ the impetus to pursue exchange data that would otherwise be uneconomical to carry.
Low-latency and enterprise data provider Activ Financial is aiming to fill the last few gaps in its exchange data coverage as a result of client demand resulting from a partnership with Chicago-based risk management technology provider Prime Analytics.
The two vendors have worked together for several years, with Activ providing its ActivFeed as one of several data sources for Prime's ProOpticus risk management platform, but have recently seen an uptick in client wins and interest in Activ's feed as a more affordable alternative data source of data to power clients' complex risk management requirements.
As a result, Prime's global client base is providing the impetus─and budget─for Activ to add coverage of niche marketplaces that have not generated sufficient demand to be economical for the vendor to carry until now.
"Prime does quite a bit of work with major banks and brokerages, and that might allow us to fill in some of the gaps in our exchange coverage. We have about 230 exchanges now, and some of the lesser-known exchanges could get on our radar for us to gather and put on our network, which would allow us to go after other customers with the same requirements," says Mike Misiaszek, head of sales for the Americas at Activ. "These are usually small, niche exchanges. The gaps in our offering are very small, and are getting smaller because we are constantly adding exchanges based on customer demand, and we have around 48 other software vendor partners that drive us to continue to grow our portfolio."
For example, Activ does not currently carry data from the Santiago Stock Exchange, the Mexican Derivatives Exchange (MexDer), Bursa Malaysia's derivatives market, and the Tokyo Financial Exchange (TFX). Misiaszek says adding TFX would be an easy task because Activ already has network points of presence and co-located equipment in Tokyo datacenters. However, for every other new exchange added, the vendor has to go through the process of understanding its market data costs and reporting structure, as well as the cost of infrastructure to connect to the market.
"If we bring on a lesser-known Asian exchange, is it just for local clients, or is it for international clients, and will we need to add more bandwidth to our international circuits?" Misiaszek says.
"Activ's ability to add content over the years has certainly helped us to maintain relationships. And because Activ has global coverage at an attractive price point, we are working on new applications and some active proposals, which have brought new life to this relationship," says John Kelley, executive managing director at Prime, whose ProOpticus platform captures positions data in real-time from clients' systems, along with real-time data from Activ. "For every position update or price update, we re-stress the entire account. Clients can build out as many risk templates as they want, and build alerts around those... to notify you if a client position violates a rule─i.e., if a client adds to a position or changes its risk profile."