Opening Cross: Location, Location, Consolidation and Diversification

At the same time, exchanges have gone from supplying vendors to providing data direct to clients, and are constantly building added-value datasets and analytics, and placing more emphasis on increasing market data revenues as a means of diversifying their income in the face of lower volatility and trading volumes, which are driving them to seek out new sources of income to make up for lower revenues elsewhere, according to new a report by Burton-Taylor International Consulting and Porter Walford Consulting. For example, in recent weeks, Deutsche Börse unveiled a new options liquidity indicator for the most-traded options on its Eurex derivatives exchange, while Austria’s Wiener Börse struck an agreement to license and distribute market data from Croatia’s Zagreb Stock Exchange—another step in Wiener Börse’s diversification strategy of becoming a hub for market data from Central and Eastern European markets.
Being a hub for lesser-known datasets is also a strategy adopted by financial search engine Quandl, which has amassed 10 million time-series economic and financial datasets since launching last year, and is now on a mission to include premium, fee-liable content, which it began with fundamental data from Zacks Investment Research, and most recently expanded with options data from Option Research and Technology Services.
Likewise, telecom, network and hosting provider BT is diversifying its trader turrets to provide greater levels of data integration—rather than just being a telephone for traders—and expand the usage of its tools among buy-side traders, with the rollout of its Netrix HiTouch turret in Asia.
Meanwhile, Perseus Telecom is diversifying its High Precision Time clock synchronization service to provide a lower tier of service that can be used by a much broader base of end users within and outside financial services—ranging from less latency sensitive broker-dealers to developers in other industries—to maintain minimal (though not nanosecond-level) clock drift and ensure compliance with new regulations that govern time synchronization across financial markets to support trade reporting and audit trail initiatives that depend on an accurate time source across all trade messages.
But diversifying a business can be a big step that requires much in the way of new resources, planning and people—usually ahead of any cash injection from the revenue that a diversification strategy is expected to generate. So how can a company pursue that strategy without over-burdening itself with people and infrastructure costs? Just as companies now use elastic cloud computing resources to perform on-demand processing and intensive data calculation tasks, they can also engage flexible staffing resources to help expand their sales activities. For example, microwave-based low-latency datafeed provider Quincy Data has engaged USAM Group—the outsourced sales agency set up by former NYSE Technologies exec Feargal O’Sullivan to assist startup data and financial technology vendors—to expand its sales function to respond to new business opportunities using experienced industry professionals without having to find and recruit the right people in-house.
In many cases, diversification is as much a destination as it is a starting point on the road to new sources of success. And how you get to that starting point is itself the first step on that road to success through diversification.
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: http://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
Symphony introduces Cloud9 mobile app
The messaging and collaboration platform is extending the “turret-like” technology and connectivity of Cloud9 to smartphones.
EU banks want the cloud closer to home amid tariff wars
Fears over US executive orders have prompted new approaches to critical third-party risk management.
Growing pains: Why good data and fortitude are crucial for banks’ tech projects
The IMD Wrap: Max examines recent WatersTechnology deep dives into long-term technology projects at several firms and the role data plays in those efforts.
Waters Wavelength Ep. 317: Bitdefender and Transilvania Quantum
This week, Bitdefender’s Adrian Coleșa and Transilvania Quantum’s Sorin Boloș join to discuss security vulnerabilities in quantum computing.
Investing in the invisible, ING plots a tech renaissance
Voice of the CTO: Less than a year in the job, Daniele Tonella delves into ING’s global data platform, gives his thoughts on the future of Agile development, and talks about the importance of “invisible controls” for tech development.
Evalueserve tames GenAI to boost client’s cyber underwriting
Firm’s insurance client adopts machine learning to interrogate risk posed by hackers
Waters Wavelength Ep. 316: Finbourne Technology’s Toby Glaysher
This week, Toby Glaysher, chairman at Finbourne Technology, joins the podcast to discuss the asset servicing industry.
State Street’s interop play for FX and easing technical debt
Waters Wrap: About six years ago, State Street partnered with Interop.io to tie together its GlobalLINK suite of platforms. Anthony explores how this plays into the “reuse” mantra.