Algo Technologies, the specialist trading technology firm that recently launched Algo M2 the fastest matching engine in the world, is addressing the question of the fragmentation of exchange and trading venue data with the launch of Algo Data, a new in-house developed market data service for trading firms and exchanges.
ALGO DATA offers fully distributed raw, normalised and consolidated market data feeds from all major European and US equities trading venues across its high speed, high bandwidth AlgoSpan exchange fibre optic network with extreme low latency.
Since 2007 MIFID has broken up domestic monopolies in equity trading and produced competitive fragmentation of trading venues and, as a result, data. The challenge facing both the buy side and sell side therefore, is how to access this range of bid/offer and transaction data in a way which allows them to route orders to the most effective market. Most legacy market data applications and networks are not designed to handle this data explosion, leading to instability and data delays. ALGO DATA is setting a new standard in providing financial markets with high speed, low cost market data that is easy to implement. All offerings are EMS and OMS neutral meaning users can consume them in feed format but also work with their EMS/OMS vendors to plug them into their existing infrastructure.
ALGO DATA is available in raw or normalised form at every exchange/ MTF collocation centre ensuring the lowest possible latency. This compared to most legacy vendor solutions which send data from every single exchange to a central processing point to standardise it, which adds huge latency. This gives ALGO Technologies customers the ability to co-locate and contract with ALGO Technologies to take the data from all major European markets, either at every single data centre location where the trading venues are ensuring the lowest possible latency, or in any location that their trading and market data engines are located. In addition a consolidated ALGO DATA feed has been launched which provides an aggregated EBBO (European Best Bid and Offer) and consolidated tape for stocks traded across multiple venues that are fully fungible (i.e. have the same ISIN, Currency and place of settlement).
Hirander Misra, CEO of ALGO Technologlogies commented "Market participants are all too often achieving stale execution and not best execution as a result of slow market data feeding their algorithms and smart routers leading to missed trading opportunities. You can have the best smart router in the world, yet still find yourself disadvantaged in the market by using legacy slow data - much like getting to the party when it is over. Trading firms can now rely on what we believe is the fastest data service in the market with the updates reflecting the market movement instantaneously ensuring that our clients get the best price at that moment and not what was the best price some time ago, which, if derived off a slower vendor solution would be a stale price."