Opening Cross: Digging for Gold in the Data Sandbox
The emergence of "sandbox" organizations and development environments are fostering a climate of innovation.

In the data world, a sandbox represents pretty much that same philosophy—call it experimentation through plug-and-play—with organizations creating environments designed to nurture innovation, where developers have access to everything they need to create next-generation data services, from easily accessible datasets to connectivity and hosting, all generally at preferential rates or entirely free of charge.
Then there are also initiatives like the aptly-named FinTech Sandbox or New York Fintech Innovation Lab, which offer a formal program of subsidized services and structured mentoring by experienced fintech executives. For example, web services data provider Xignite is providing APIs for accessing market data free of charge to nine FinTech Sandbox participant startups, three of which demonstrated solutions leveraging Xignite’s data at last week’s FinTech Sandbox Demo Day.
“A lot of developers coming out of school don’t really know the financial industry, and data is expensive. So the idea [of sandbox initiatives] is to reduce friction and provide data and so on free of charge for six months for testing,” says Dinesh Chheda, advisory board member and data executive in residence at FinTech Sandbox.
But sandboxes aren’t just for complete newcomers: Swedish market data vendor Millistream has launched its Millistream Sandbox, a test environment that allows clients to experiment with delayed data from its products in an unashamed attempt to get them “hooked” on Millistream’s data and delivery mechanisms. Because Millistream does not require Sandbox users to sign contracts, users are not restricted to how they can use the data within the broad condition that it be used for testing purposes, or for how long they must subscribe. So if the client tests something that doesn’t work out, they can move on and try out something else without having to continue paying for something they no longer use.
The participation of vendors and founder sponsors who are willing to subsidize—or eat entirely—the cost of market data is key, because it legitimizes the model of free or affordable tiers of data delivery, and points the way to a more flexible model for data licensing; and importantly, flexible yet standardized, so that it ultimately becomes easier to gain buy-in for new models from across the industry.
More often than not, exchanges are cast as the bad guys of data licensing and fees. However, some exchanges like Deutsche Börse are already taking it on themselves to support the next wave of financial technology and data newcomers, using their extensive infrastructures and datacenters to host and support startups with limited resources, and to help them connect—both in terms of data connectivity and from a business partner perspective—with other data sources and service providers.
The enormity of the task facing financial firms to not just update their infrastructures and applications, but implement the requisite architecture to support true Data-as-a-Service delivery means that, as Chheda says, firms will need to enlist those innovative startups—in which case, the spirit of innovation and the fee tiers that support it may become more pervasive, more standardized, more accepted, and more common across other areas of business, perhaps ultimately enabling truly open, plug-and-play and pay-as-you-go data platforms, which is what consumers have been requesting for a long time.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: https://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
Droit awarded patent, US CT plan shapes up, Chicago traders go to court, and more
The Waters Cooler: TNS expands 24x5 trading, SIX and Pictet complete a token pilot, and an Asic probe spells more trouble for ASX in this week’s news roundup.
GenAI too risky for collateral processes
The technology has been heralded as game-changing for other areas of finance, but its potential to hallucinate may disqualify it from sensitive settlement procedures.
Waters Wavelength Ep. 324: A philosophical conversation about AI
This week, Reb and Nyela discuss BNY’s digital workers, and what the use of AI in society signals for the future.
Cloud Wars: Are EU and APAC firms really pining for homegrown options?
Waters Wrap: In the wake of tariffs and regional instability, there’s chatter about non-US firms lessening their dependency on the major hyperscalers. Anthony is not buying it.
Google gifts Linux, capital raised for Canton, one less CTP bid, and more
The Waters Cooler: Banks team up for open-source AI controls, S&P injects GenAI into Capital IQ, and Goldman Sachs employees get their own AI assistant in this week’s news roundup.
Numerix strikes Hundsun deal as China pushes domestic tech
The homegrown tech initiative—‘Xinchuang’—is a new challenge for foreign vendors.
RBC’s partnership with GenAI vendor Cohere begins to bear fruit
The platform aims to help the Canadian bank achieve its lofty AI goals.
Deutsche Bank casts a cautious eye towards agentic AI
“An AI worker is something that is really buildable,” says innovation and AI head