The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Time Stamps Key To Market Data Performance, TCA Provider Tells Webinar

To get the highest performance possible from managing market data operations, especially connectivity, a deterministic approach may not be the only one that should be taken, observed Louis Lovas, director of solutions at OneMarketData, who spoke in a December 8 webinar sponsored by the transaction cost analysis provider, and hosted by Intelligent Trading Technology and A-Team Group.

“If you consider from the consuming applications for data that data quality not only includes the idea of determinate behavior, but also elements that are more natural to the applications for firms that are trading across markets, that’s where you want the consistency in symbols and symbol continuity across market centers,” Lovas said.

Separating the parts of a transaction can affect how data consumers get information about that transaction, observed Mark Reece, director of professional services at MCO Europe, a financial data processing technology provider. “Depending on what you’re trying to do, you may impact the latency of your whole market data system,” he said. “Trades might impact or orders might be impacted by bursts of arrivals of market data. Similarly, if you’re a high-frequency market maker who is doing moving in futures and options, a single ticket underlying may result in a firestorm of outgoing quote updates from you. So you need to be very careful about separating those parts.”

Latency goals in relation to market data operations performance can vary, according to Ted Hruzd, senior infrastructure architect at RBC. “The goals of prop traders, market makers, high-frequency traders and arbitragers are much more latency sensitive,” he said. “Equities and futures traders are more apt to opt for ultra-low-latency. FX is lagging behind bond and commodity trading, but there have been some recent advances in electronic trading for corporate bonds.”

To best support transaction cost analysis or market impact analysis, time-stamp precision and synchronization is “vital,” said Lovas, “particularly for cross-market price discovery, or consolidation or aggregation across markets.”

Related content

WEBINAR

Recorded Webinar: The evolution of market surveillance across sell-side and buy-side firms

Market surveillance is crucial, and in many cases a regulatory requirement, to ensuring orderly securities markets and sustaining confidence in trading. It can be breached and has become increasingly complex in the wake of the Covid pandemic, Brexit, and the emergence of new asset classes. This webinar will review the extent of market abuse in...

BLOG

Northern Trust and Two Sigma Partner to Provide Quantitative Analytics to Asset Allocators

Northern Trust and Two Sigma have entered into a strategic agreement to offer quantitative analytics through Venn, Two Sigma’s cloud-based investment analytics platform, to Northern Trust’s clients. The partnership provides asset allocators with enhanced portfolio insights and analytics, and aims to allow them to make better investment decisions. Under the agreement, Northern Trust will offer...

EVENT

RegTech Summit Virtual

The RegTech Summit Virtual is a global online event that brings together an exceptional guest speaker line up of RegTech practitioners, regulators, start-ups and solution providers to collaborate and discuss innovative and effective approaches for building a better regulatory environment.

GUIDE

Trading Regulations Handbook 2021

In these unprecedented times, a carefully crafted trading infrastructure is crucial for capital markets participants. Yet, the impact of trading regulations on infrastructure can be difficult to manage. The Trading Regulations Handbook 2021 can help. It provides all the essentials you need to know about regulations impacting trading operations, data and technology. A-Team Group’s Trading...