About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

The Conservative and Liberal Message: Taxes and Data Rates to Rise in 2013

Subscribe to our newsletter

There are some great certainties in life, such as taxes, death and so on. But death rates and taxes can go up and down. Not so with market data. There is no argument. Data rates always go up.

Although 2012 was a notoriously poor year in terms of US trading volumes, aggregate market data traffic rose at an annual rate of 16%, according to FIF statistics. Indeed, even as the politicians gather to argue on Capitol Hill about the US debt ceiling, the key utilities governing the distribution of US equities and options data have already approved significant increases by the end of this January.

SIAC’s CQS feed carries top-of-book quotes from US stock exchanges.  It is increasing its output ceiling to 2,500,000 messages per second. The highest output rate seen on this feed stands at 580,870 mps. In other words, SIAC has provisioned headroom over four times the highest surge ever seen. Nasdaq has also been quite conservative by providing for an increase in headroom, from 300,000 to 400,000 messages per second on UQDF. This quote feed peaked at 209,975 mps in September 2012. Meanwhile, OPRA is set to increase the ceiling on the US equity options feed to 12,929,000 messages per second on January 8. Notably, the highest output ever seen on this feed was 4,999,610 messages per second when the US election results came in.

The conservatism of the utilities is no doubt driven by the business plans of the multitudinous exchanges, and this is why we are seeing much higher ceilings in 2013. As a result, there is real potential for massive simultaneous output that could be extremely damaging for those who are not prepared, assuming the markets pick up steam.

Conservative data recipients are therefore well advised to provision liberal quantities of bandwidth and system resource to allow for the next potential super storm. There is no excuse for under provisioning.

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Enhancing Buy-Side Trading Efficiency: Navigating Interoperability and AI in Real Workflows

Date: 26 June 2024 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Enhancing Buy-Side Trading Efficiency: Navigating Interoperability and AI in Real Workflows Emerging capabilities in AI and interoperability are transforming trading workflows, with the promise of heightened levels of collaboration and personalisation resulting in greater efficiency and performance. The potential...

BLOG

2024: Why FX Liquidity Provision Analysis (LPA) will Come Into its Own

By Daniel Chambers, Head of Data & Analytics at BidFX (an SGX company). As we usher in 2024, the world of market infrastructure is abuzz with anticipation, particularly in the foreign exchange (FX) markets where investors hang on every word uttered by central banks around monetary policy. Looking ahead, the New Year promises an increased...

EVENT

ESG Data & Tech Summit London

The ESG Data & Tech Summit will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

Enterprise Data Management, 2009 Edition

This year has truly been a year of change for the data management community. Regulators and industry participants alike have been keenly focused on the importance of data with regards to compliance and risk management considerations. The UK Financial Services Authority’s fining of Barclays for transaction reporting failures as a result of inconsistent underlying reference...