Nasdaq Moves Into Analytics11.01.2016 By Rob Daly Editor-at-Large
Global exchange operator Nasdaq continues to diversify its revenue streams.
The company has launched equities and a US Treasuries analytics platforms, dubbed Trading Insights and eSpeed Analytics. Both products come out of Nasdaq’s Global Information Services Innovation Lab, according to Oliver Albers, vice president of Global Information Services at Nasdaq.
The goal of the innovation lab is to bring members of Nasdaq’s various businesses lines together with data scientists to determine potential new products using machine learning and other nascent technologies, added Jeff Kimsey, vice president and head of global product management for Global Information Services at Nasdaq
“We take those ideas, go out to customers, and vet them,” said Kimsey. “When we get a positive response, we will look to develop prototypes and have customers look at those prototypes and determine if they would work as a solution for their organization.”
Nasdaq launched the innovation lab a little more than a year ago, he added.
The Trading Insights offering combines a client’s trade data that executes on Nasdaq exchanges with Nasdaq market data and other third-party data to provide clients with insights related to peer benchmarking and missed liquidity and latency opportunities.
Nasdaq GIS calculates the daily results on a client-by-client basis and delivers the results via flat file using FTP. “Since it is a bilateral relationship that only involves the client’s trades on Nasdaq markets, the files are relatively small,” said Kimsey.
The eSpeed Analytics is not a firm-by-firm offering, according to Albers.
“It’s a value-add product that shows the aggregated liquidity of all the on-the-run US Treasuries that we have on the market at one-second snapshots,” said Albers. “The dispersion of liquidity and advanced insights on what is going on in the market. That include approximately 50 statistics across 133 data points across all the on the run two-, three-, five-, seven-, 10-, and 30-year US Treasuries.”
Other potential products being examined by the innovation lab include one that address trading, investing, further analytics, and IPOs, according to Kimsey.
More on Analytics:
With Alastair Clarke, European Equity Trader, Capital Group
More than 15 sell-side and 20 buy-side firms have joined the platform.
Analytics will cover portfolio construction, pre-trade risk and post-trade performance attribution.
Virtu aims to help clients interact with markets more efficiently so they can mitigate risk and lower costs.
ESG is increasingly at the forefront of decision-making for investment managers and asset owners.