Interactive Data Corporation’s Pricing and Reference Data business is to supply reference data to Austrian securities exchange Wiener Börse to support its new MiFID OTC transaction reporting facility.
Interactive Data’s MiFID related reference data identifies trade venues and their types by location codes, the most relevant market for an instrument, whether an instrument is within the scope of MiFID, the instrument type and whether it is complex or non-complex. It also identifies the classification of a financial instrument code (CFI), the unique or unambiguous instrument identifier (UII), a share’s liquid status and its deferred publication delay potential. Reference data is just one component of the raft of MiFID related services Interactive Data unveiled earlier this year (Reference Data Review, May 2007).
Bob Cumberbatch, business lines director, Interactive Data (Europe), says there was an existing relationship between Interactive Data and Wiener Börse. “Our Managed Solutions division in Germany builds customised websites for financial services clients, and it has built a web-based, real-time price information system for Wiener Börse – Wiener Börse Live. Obviously, our real-time services division carries real-time stock exchange data, including prices from Wiener Börse. Those are the two areas of historical relationship between us,” he says. “For MiFID specifically, most of the exchanges, including Wiener Börse, are offering some form of off-exchange price reporting service, and they need descriptive data about the instruments for which they may receive information from contributors. That is the basis of this current relationship with Wiener Börse,” he continues. “Because MiFID is more international in nature, the exchange could receive contributed data for any instrument admitted to trade, and that is generating a requirement for the data we will be supplying to it. The exchange will take daily files of instrument data from us, which they’ll use to validate the contributions they get.”
Roger Sargeant, managing director of Interactive Data (Europe), says the vendor was able to meet Wiener Börse’s MiFID reference data requirements using the data it had already put together for MiFID. “We have done no bespoke development for them,” he says. “The data they need is a subset of the entire scope of our MiFID reference data.” There may be further opportunities to work with the exchange going forward, he suspects. “This is phase one. However… it is not clear how the exchange will evolve its service and its use of our service.” Adds Cumberbatch: “At the very least we will be looking to take the OTC pricing data published by the exchange and make it available within our real-time pricing service.”
Sargeant says while the vendor is not “surprised” by this deal with the Austrian exchange, it believes that financial institutions will be the main users of its MiFID reference data. “We did expect that organisations like Wiener Börse would have a need for descriptive data under MiFID,” he says. “But the more conventional usage of our MiFID reference data will be among the financial services marketplace, and those are the potential clients that are showing a lot of interest now. This interest will become more concrete as the year develops.”
Reference data is currently Interactive Data’s primary MiFID push, he continues. “We have been very encouraged by the level of interest and as the year progresses this will intensify, with the real interest becoming clear in Q4,” he reckons. “At the moment, the primary interest seems to be centred around instrument data/reference data. As more pricing venues go public, we expect the demand for additional pricing feeds and for our tick repository to increase as well.”