NYSE technologies and First Derivatives have teamed up to launch the new “Tick As A Service”. “Tick As A Service” will allow firms that carry out blacktesting on compliance checking and algorithms to work with huge amounts of historical tick data directly from their facilities.
First Derivatives is an established UK software development firm. NYSE technologies have produced various technology products and services for the New York Stock Exchange for long. The service will not be a pay-per-use, it will be a monthly subscription service instead. Data is currently being stored separately for each customer who uses it, but the team is focusing to move all the data to a single center storage facility. This means that on demand payment may be possible in the future. The move is another evidence of the advancement of cloud technology in the financial markets and firms can highly benefit from “Tick As A Service” in the following ways.
1. Reduce Hardware Management
Large quantities of data will no longer need to be stored in a company’s own system. This reduces the need to manage hardware. Storing data on site is costly and requires the services of an IT expert.
2. Blacktesting will use Cloud in the Future Anyway
Many large firms are already using services from companies like Amazon to deliver infrastructure-as-a-service cloud. Most blacktesting is now done on processors provided by such companies. NYSE has just given firms another strong reason why they should migrate blacktesting to cloud.
Even before the launch of the new service, NYSE offered Capital Markets Community Cloud. This cloud provides an infrastructure for blacktesting as well.
3. Compliance is Still Quite New
Compliance on historical data is still quite new and needs an infrastructure that can allow historical data to be checked easily. Since huge amounts of tick data are stored in a well managed storage center, checking is relatively easy. Compliant behavior check can also be run on huge historical data in the near future and will be provided by “Tick As A Service”. Compliance checks can be placed on the data at anytime even in its run phase.
Running compliance routines on cloud is easy compared to running them on a hardware system maintained by the company itself.
What Firms would Require “Tick As A Service”
Any firm that has large volumes of historical data requiring blacktesting should consider “Tick As A Service”. It is recommended especially to firms that are trading on NYSE’s exchanges as data will be quite relevant.
For firms that don’t use any of NYSE’s exchanges, this service is not recommended. Competitors like Bloomberg and Thompson Reuters will come up with better offerings it seems.