The data as a service (DaaS) model is increasingly gaining ground among firms seeking analytics solutions to deal with MiFID II requirements on real-time and historical data.
For the first time, financial institutions involved in fixed income, foreign exchange, currency derivatives and commodity derivatives will soon be required to meet the same data standards MiFID I has imposed on the equity markets.
As a result of MiFID II, they will need solutions that allow them to capture and analyze transaction-related data throughout the entire lifecycle of a trade.
This presents a challenge for those broker-dealers who only infrequently execute bond trades, or for investment managers seeking to model transaction cost analysis (TCA) to ascertain whether dealers are quoting the best price.
Solving these MiFID II challenges requires new technologies and the ability to scale them according to a firm’s individual needs, creating a large, untapped opportunity in in the now disrupted over-the-counter markets.
Entire trade lifecycle
With data-as-a-service, organizations are able to build centralized platforms to hold and analyze all the data they need, cutting down costs associated with moving data around.
This helps them increase transparency, because with one tool they can capture and analyze transaction-related data throughout the entire lifecycle of a trade.
It also helps firms improve returns by removing the need to clean and normalize financial data multiple times across the enterprise. Once a centralized, clean dataset is available, all operational groups can use it.
Discover more about how we have the expertise to ensure you meet your MiFID II obligations
Best execution compliance
We are partnering with Kx, a division of First Derivatives, to bring its DaaS offering to the latest version of Velocity Analytics, VA8.
The platform features extraordinary new functionality built on the foundation of our financial and risk content, combined with Kx’s robust computing and analytical software.
Key enhancements provide ultra-high-speed processing of real-time, streaming and historical data to help EU and non-EU financial firms of all sizes meet their MiFID II obligations.
VA8 enables a broad range of use cases such as best execution compliance, transaction cost analysis, quantitative and systematic trading.
It will also support our new multi-asset best execution and SI (Systematic Internaliser) determination capabilities in 2018.
Data management benefits
The Kx DaaS platform, Kx Data Refinery, offers a high-performance low-latency data processing tool providing flexible real-time access to time-series data and powerful analytics.
It’s designed to ease the data management and processing burden so users can focus on leveraging the data itself.
There are a complete set of tools for managing data from ingestion through consumption by multiple parties in a consistent, controlled manner.
Kx Data Refinery can handle the full range of OTC and exchange traded instruments with different volumes and velocities.
‘Gold standard’ analytics
Our decision to offer a data-as-a-service platform on VA8 stems from the decades of experience Kx has building large, complex trading systems at banks, hedge funds, exchanges, and regulatory bodies, many of which have long used its kdb+ database.
Real-world benchmarking by STACresearch.com shows that Kx is the gold standard for market data analytics.
As with our other partnerships, our venture with Kx creates something greater than the sum of its parts, providing our clients with the most straightforward, deep, and effective real-time system for market data analysis available.