Data Demands Accelerate Ahead of MiFID II

Terry Flanagan

Low-latency messaging being implemented by top banks.

Demand for low-latency data is increasing in Europe as new regulations, such as MiFID II, take shape.

“I anticipate the requirement for fast, reliable market data with added value and market  leading APIs to increase [as a result of new regulations],” Dane Thacker, sales director, EMEA at Activ Financial, told Markets Media.

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.

“In the European region, our strategy is to introduce additional content, provide relevant European Exchanges in FPGA and continue the sales approach that has been successful in 2011,” Thacker said.

Demand is being driven by requirements for reliable high performance, fully managed data services. “Additionally, the ease of integration using the Activ API and the scalable nature of our range of services for both price and performance are driving demand for our offering,” said Thacker.

Saxo Bank is utilizing Activ’s global exchange traded options market data offering to source prices for its online listed products trading operation.

Customers of Saxo Bank will benefit from faster market data and a more robust infrastructure through Activ’s ability to aggregate its global low latency data network in the region.

Saxo selected Activ to help grow its exchange-traded options trading business because of its performance level and ability to bring low latency market data from global data centers to Europe, said Alan Plaugmann, deputy head of CFDs and listed products at Saxo Bank.

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.

The proposals will be formally unveiled on Oct. 21, with adoption of new rules expected in 2013.

Related articles

  1. Exchange group reported its best second quarter, following a record first quarter.

  2. Institutions can manage their bitcoin exposures in existing portfolio management and trading workflows.

  3. Enabling a straight through process reduces operational complexity.

  4. The new zero-footprint datafeed removes the need for dedicated market data infrastructure and equipment.

  5. A robust sector taxonomy helps recognize similarities between digital assets which lead to correlated returns.