Interactive Data Corporation has responded to the growing demand from certain investment strategies for faster access to data by launching a new low-latency direct exchange data service.
Called DirectPlus, the service, which is planned for release in the second quarter of 2007, is designed to provide customers with access to sub-one millisecond data for powering a range of low latency financial applications, including algorithmic trading engines and order management systems.
Interactive Data says DirectPlus is a fully managed service that aims to leverage the high-performance ticker plant owned by the company to deliver ultra-low latency data despite massive increases in data volume.
It uses sophisticated tools designed to ensure data quality and optimal latency, and centrally implements exchange data format and protocol changes, which can help eliminate the need for customers to deal with these issues.
DirectPlus also monitors bandwidth capacity, which is designed to ensure that all incoming exchange lines and feeds to customer applications have the necessary capacity.
With these features, DirectPlus is designed to help customers overcome a range of challenges, including the high-costs and complex technology that are often associated with establishing direct-to-exchange feeds.
Upon its release, DirectPlus data coverage will include NYSE Openbook (including Best Quotes), Nasdaq Level 1 and SingleBook, ArcaBook and Direct Edge ECN. Interactive Data plans to continue to expand the universe of direct data delivered through DirectPlus.
In addition to ultra-low latency data from these sources, Interactive Data already offers global exchange data from the over 450 sources available via PlusFeed, its real-time consolidated feed, tick histories, global news, reference data, corporate actions, fundamental data, calculated indicators and OTC market data.
By providing access to multiple liquidity pools, ultra-low latency data and offering a seamless integration into a comprehensive tick history database, DirectPlus can be used by customers as they seek to meet the “best execution” compliance mandates stipulated by Reg NMS.
DirectPlus will be hosted at the New York metropolitan data center of BT Radianz, which will provide the connectivity. New York customers can use the BT Radianz technology to co-locate their applications alongside DirectPlus, which can enhance ultra-low latency by capturing data directly at the delivery point.
“Historically, it had been very expensive and technically challenging for firms to establish direct-to-exchange datafeeds for their low-latency financial applications,” says Mark Hepsworth, president of Interactive Data Real-Time Services. “With DirectPlus, we will provide customers with a turnkey offering that leverages Interactive Data’s expertise in the collection and delivery of ultra-low latency data within the secure hosting environment provided by BT Radianz,” he adds.
Hepsworth continues, “This new offering is designed to help a broad range of clients, including hedge funds and buy- and sell-side firms, more quickly and cost effectively access and utilize sub-one millisecond data for their most innovative financial applications. And because DirectPlus is fully-managed, we remove significant technology burdens from customers, freeing up more of their time to focus on their core strengths of developing and enhancing proprietary financial systems. We are also offering a range of other services to support their trading strategies.”