big xyt, the independent provider of smart data and analytics solutions, and the Johannesburg Stock Exchange (JSE), Africa’s largest stock exchange, have established a joint venture, big xyt ecosystems. The new company will make the Trade Explorer data analytics platform, initially launched in South Africa, available to other trading venues and financial centres worldwide.
The Trade Explorer platform gives exchanges and trading venues the ability to provide low cost, rapidly deployable, own brand data analytics solutions to their information service customers, through web-hosted services.
Trade Explorer offers advanced analytics tools that enable end users to drill down on market data to better understand market dynamics such as liquidity and order flows, market share, business concentration, and execution performance. It also provides tools for analysing trading patterns and for pre-trade decision support.
“We originally developed the Trade Explorer platform together with the JSE, and it has been extremely well received as we’ve built it out,” says Richard Hills, Head of Client Engagement at big xyt, in conversation with TradingTech Insight. “We’ve come to realise that the solution is highly applicable in every financial centre, whether fragmented or not, so it makes sense to provide it as a package to exchanges and trading venues who want to distribute data and analytics as part of their information services.”
Initially, the platform will be offered to equity-based venues, with other asset classes on the product roadmap, says Hills. “That’s the long term goal. We already do equities, ETFs, warrants, listed derivatives, etc. within the platform. Everything that’s equity-based, if it’s listed, we can include it. We’re now increasingly being asked about fixed income, and we’re active in the RFQ space. We can provide the technology platform to any trading venue that wants to take its unique datasets and distribute those through value-added data analytics to, to whoever wants it.”
big xyt ecosystems will also offer private cloud and ‘DataShop’ functionality to help trading venues market and promote their own unique data sets, says Hills. “We can deploy through our own private cloud hosting or we can deploy the analytics layer on top of the existing cloud services of an exchange, as an add-on to their existing architecture.”
As an equal investment by both joint venture partners, big xyt ecosystems aims to benefit from big xyt’s technology stack and experience of providing data and analytics solutions to the market, while the JSE brings the innovative culture that resulted in the Trade Explorer concept, with proven use cases from its own marketplace, and an extensive peer network within the global exchange community.
Commenting on the joint venture, Leila Fourie, JSE Group CEO, said, “All trading venues understand the need for a market data business adjacent to the core mission of providing high-quality markets. Innovative data analytics solutions form a major component of the future growth in this multi-billion dollar sector. big xyt ecosystems will empower our peers in other financial centres to develop this opportunity.”
Robin Mess, CEO and Co-founder of big xyt, added, “Trading venues can rapidly realise additional revenue streams by leveraging their unique datasets without making heavy investments in new technology. For market participants, this offers greater accessibility to data analytics for firms of all sizes as there is no longer the need to develop such capabilities in-house.”
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