Use Case: Exchange

Firm type Any equity exchange
What do you need/want to do? Analytics for global markets (or a given peer group) in order to:

  • Understand trends
  • Monitor trading activity
  • Review the quality of liquidity
  • Understand your own market quality and performance
  • Compare performance to other relevant exchanges
What are the alternative solutions? What are their disadvantages?
  • In-house solution (time to market, cost of data and infrastructure)
  • Market data terminals (information has to be gathered for each exchange = increased cost)
What are the benefits to market participants? Participants can derive value from the proposed analytics services in many ways. Here are some examples:

  • Business Strategy and Monitoring: Accurate, independent KPIs drive better business understanding.
    Example: In an agency business, the desk head uses volume and market share data to more accurately forecast and explain the progression of commission growth and the impact of product changes.
  • Sales & Marketing: Market share and peer group analysis can help a firm to reinforce its USPs.
    Example: Execution head of sales uses our data to showcase market share and specialisations (for example in certain stocks) to their clients in comparison to their peer group and wins more business.
  • Development & Operations: Highly granular metrics can highlight problems quickly.
    Example: The product manager in a market making firm notices from our data that fill ratios are worsening. Investigation reveals that a recent upgrade introduced latency, which is quickly corrected.
What are the benefits to Corporates & investment firms? Equally, market users are interested in how trading data can help inform their processes and decision making. Here are some examples:

  • Broker Performance Monitoring: Independent KPIs can reinforce important compliance processes.
    Example: The Best Execution committee notices that one broker is delivering substantial savings by crossing the spread less frequently than its peers and decides to add the KPI for commission allocation.
  • Investment Decision Making: Trading data helps to inform the investment process.
    Example: The CIO of an active fund management firm sees elevated volumes in a small cap name that is on the watchlist. After several calls to analysts the manager decides to buy the stock.
  • Corporate Treasury & Investor Relations: unusual patterns of activity can indicate important events.
    Example: Heads of IR can monitor their shares for unusual volumes and patterns, which can alert them to potential changes of ownership or price moving activities. This helps with their investor narrative.
How long is the implementation and what resources are required from the client?
  • Instantaneous access
  • No implementation
  • No resources required from the client
  • Business users could immediately start using the product
What are the results/beneficial outcomes? What could you do now that you couldn’t do before? Exchanges can: 

  • Demonstrate strengths to participants
  • Respond to market trends with product innovation
  • Compare trading of securities listed across different exchanges

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