Best reference data managed service—dxFeed

Product overview—dxFeed Market Data IaaS

In recent years, dxFeed, a subsidiary of Devexperts, has received increasing numbers of requests from firms to handle their data infrastructure in addition to the provision of market data itself. Ordinarily, clients would need to develop their own systems for delivering dxFeed’s data to their end-users. This includes servers, network channels and firewalls, as well as having to monitor and manage the changing loads on these systems. As cloud technology has matured and the software-as-a-service (SaaS) model has become established, firms are now more comfortable with outsourcing crucial components of their businesses. This model allows start-ups to compete with larger incumbents without having to develop everything in-house or employ large numbers of engineers to manage these systems.

Secret sauce

As an infrastructure-as-a-service (IaaS) provider, dxFeed takes care of the technical challenges related to market data delivery and allows its clients to concentrate on their raison d’être. Clients’ end-users worldwide connect to the business as they usually would—they receive authorization as a token to obtain high-quality market data from the European Union, the US, Hong Kong and Australia. This means clients are not required to deal with the overheads associated with building, managing and maintaining the technology and infrastructure to make the above take place. dxFeed manages clients’ systems, their capacity, data throughput, latency issues, and so on. It currently deploys in Amazon Web Services and Google Cloud Platforms, and its team configures the virtual servers, load balancers and auto-scale groups.

Recent milestones

• dxFeed’s Index Management business grew appreciably, supporting collaboration with Securities and Exchange Commission-regulated exchanges. It also released its own family of indexes. 
• Launched a decentralized finance (DeFi) product for market data dissemination from decentralized exchanges.
• Built its blockchain nodes infrastructure.
• Significantly increased the number of partners among third-party platforms for its business-to-consumer, business-to-business-to-consumer and retail data distribution business.
  Launched several IaaS projects and an exchange compliance solution for brokers to facilitate licensing.

Future objectives

• Creating its own historical dataset is one of the challenges the company has set for itself. It has built a new high-performance dxFeed data lake platform to serve as the foundation for the future generations of its historical data platform and retail data shop.
• dxFeed will continue to work on a new generation of web widgets and web-based terminal software to simplify end-user access to numerous services.
• The company plans to expand its indexes line and distribute it to key terminals in the EU and the US.
  dxFeed aims to further develop its DeFi product and increase the number of supported blockchain networks and exchange protocols.
• New direct geographic coverage will include Asia-Pacific markets and Canada.

Why dxFeed won   

Munich-headquartered dxFeed has been steadily racking up the wins in the annual Inside Market Data & Inside Reference Data Awards: It picked up its first win in the 2020 edition (Best data analytics and technology provider) while, in 2022, it emerged top in the Most innovative market data project category. In 2023 dxFeed was awarded Best infrastructure provider to the sell side in the Sell-Side Technology Awards, underlining its versatility across both the data and infrastructure realms.

It seems that pretty much all market data providers are now already either offering a managed data service or are prepping one for market. And for good reason: Firms large and small on both sides of the industry can no longer afford to ignore the significant financial, technical, operational and time-to-market benefits offered by the managed service model. dxFeed is perfectly positioned to respond to that demand, offering high-quality market data and, crucially, its underlying infrastructure so clients can focus on their primary functions of transacting their business and serving their end-investors.