Market data provider big xyt and the Johannesburg Stock Exchange (JSE) have announced the launch of big xyt ecosystems, a new joint venture company.
The joint venture will provide the Trade Explorer data platform, launched in South Africa earlier this year, to financial centres globally.
“We have created a new company as a joint venture because we believe that we have highly complementary capabilities,” Richard Hills, head of client engagement at big xyt, told The TRADE.
“While big xyt brings a proven technology stack and domain expertise in the data analytics field, the JSE brings its knowledge of the needs of a financial market ecosystem and experience of providing very high service levels in the information service space. The combination leads to a trusted partner for other exchanges seeking to acquire this capability.”
Trade Explorer allows trading venues to distribute data analytics solutions to information services clients, including trading firms, issuers and investors.
End users receive the solutions directly through web hosted services under the branding of a sponsoring venue, which the two firms state will mean rapid time to market and low cost of ownership.
Trade Explorer also offers analytics tools which allow users to understand market liquidity and flows, market share, business concentration and execution performance, alongside delivering tools for analysing trading patterns and for pre-trade decision support.
“All trading venues understand the need for a market data business adjacent to the core mission of providing high quality markets,” said Leila Fourie, chief executive of JSE Group.
“Innovative data analytics solutions form a major component of the future growth in this multi-billion dollar sector. big xyt ecosystems will empower our peers in other financial centres to develop this opportunity.”
The new joint venture will benefit from big xyt’s technology stack and experience with providing these solutions to the market, while JSE will bring proven use cases from its own marketplace as well as its peer network within the global exchange community.
“Trading venues can rapidly realise additional revenue streams by leveraging their unique data sets without making heavy investments in new technology,” said Robin Mess, chief executive and co-founder of big xyt.
“For market participants, this offers greater accessibility to data analytics for firms of all sizes as there is no longer the need to develop such capabilities in-house.”