In finance, market data is the pricing and trade-related data for financial instruments reported by trading places such as the stock exchange. Market data allows traders and investors to find out the latest prices and see historical trends for instruments such as equities, fixed income products, derivatives and currencies.
Market data for certain instruments will include the instrument identifiers and where they are traded such as ticker symbols and exchange codes plus the latest bid and ask prices and last trading time. It may also include other information such as traded volumes, bid and bid sizes and static data on financial instruments that may come from various sources. There are a number of financial data vendors who specialize in collecting, cleaning, compiling and distributing market data and this has become the most common way that traders and investors gain access to market data.
The delivery of price data from exchange to users, such as merchants, is highly time-sensitive and specialized technologies designed to handle massive data collection and throughput used to distribute information to traders and investors. The speed of market data distribution can be very important when the trading system is based on data analysis before others can do it, as in high frequency trading.
Market price data is not only used in real time to make on-the-spot decisions about purchases or sales, but historical market data can also be used to project price trends and to calculate market risk on investment portfolios that may be held by individuals or institutional investors.
Video Market data
Daftar umpan
Maps Market data
Struktur data
A message of equity market or business data that comes with NYSE, TSX, or NASDAQ might appear like this:
The above example is a collection of various data sources, such as bid data (bid, request, bid size, request size) and trade data (last sale, last size, volume) often generated through different data feeds.
Data delivery
Shipping price data from the exchange to the user is very time sensitive. Special software and hardware systems called ticker plants are designed to handle massive data stream collection and throughput, display prices for traders and feed the computerized trading system fast enough to catch opportunities before the market changes. When stored, historical market data is also called time-series data.
Although market data generally refers to real-time or pending price quotas, this term increasingly includes static or reference data - that is. all types of data related to securities that do not change in realtime.
The reference data includes identification codes such as ISIN codes, security trading exchanges, end-of-day pricing, names and addresses of issuing companies, security requirements (such as dividends or interest rates and maturities in bonds), and exceptional corporate actions (such as pending distribution stock or sound proxy) related to security.
While price data generally comes from exchange, reference data generally comes from publishers. However, before arriving at the hands of investors or merchants, it usually passes the hands of financial data vendors who can reformat, organize it and try to clear the anomalies that are clear in realtime.
For consumer market data, which mainly are financial institutions and industrial utilities serving the capital market, the complexity of managing market data increases with increasing number of issued securities, the amount of exchange and globalization of the capital market. Beyond the increased volume of data, the ongoing evolution of complex derivatives and indexes, along with new regulations designed to contain risks and protect markets and investors, all create more operational demands on market data management.
Initially individual financial data vendors provide data for software applications in financial institutions that are specifically designed for one data feed, thus providing key financial data vendors in the area of ​​operation. But a number of larger investment banks and asset management companies began designing systems that would integrate market data into a single central store. This encourages investments in large-scale enterprise data management systems that collect, normalize and integrate feedback from multiple financial data vendors, with the aim of building a "golden copy" of data that supports every type of operation across institutions. Beyond the operational efficiency gained, consistency of this data becomes increasingly necessary to enable compliance with regulatory requirements, such as Sarbanes Oxley, NMS Rules and Basel 2 agreements.
Industrial body
There are various industry bodies that focus on Market Data:
- FISD - The Financial Information Services Division of the Software Industry and Information Industry Association. Based in Washington DC FISD operates globally and comprises three constituent groups: Consumer Companies, Vendor Companies, and Stock Exchanges.
- IPUG , the Information Provider User Group, is a UK-based organization whose membership is limited to Consumer Companies. Its main activity consists of lobbying the Vendor Company on key issues.
- Cossiom , Commission des Services et SystÃÆ'¨mes d'Information destinÃÆ' © s aux Opà © à © rateurs de MarchÃÆ' © s, is a Paris-based organization for French Consumer Companies.
Technology solutions
Businesses providing technological solutions for financial institutions for data management have evolved over the last decade, as market data management has emerged from lesser-known disciplines to specialists for high-priority issues for the entire capital market industry and its regulators. Providers range from middleware and messaging vendors, software vendors and cleanup and reconciliation services, and highly scalable solution vendors to manage a large number of incoming and stored reference data to be maintained for daily trading, accounting, completion, risk management and reporting to investors and regulator.
The market data distribution platform is designed to transport a large network of data from financial markets. They are intended to respond to rapid changes in financial markets, compressing or representing data using a protocol designed specifically to increase throughput and/or reduce latency.
Most of the market data servers run on Solaris or Linux as the main target, but some have versions for Windows.
Feed handler
Typical usage can be a "handler feed" solution. The Application (Source) receives data from a specific feed and connects to the server (Authority) that receives connection from the client (Destination) and redistributes the data further. When a client (Destination) wants to subscribe to an instrument (to open an instrument), it sends a request to the server (Authority) and if the server has not been cached, it forwards it to Source (s). Whenever the server (Authority) receives updates for the instrument, it sends it to all clients (Destination), subscribes to it.
Note:
1. The Client (Destination) may unsubscribe itself to individual instruments (the instrument cover) and no further updates will be sent. When the relationship between Authority and Destination is lost, all requests made from the client will be deleted.
2. Server (Authority) can handle large client connections, although usually a relatively small number of clients connect to the same server at the same time.
3. Clients (Destination) usually have a small number of open instruments, although a larger number is also supported.
4. The server has two levels of access permissions:
- Login permission - whether the client is allowed to connect to the server.
- Permission information - whether the client is allowed to view information about the current instrument. (This check is usually done by checking the contents of the instrument.).
Management
Expensive market data (global expenditures annually over $ 50 billion) and complex (various data, functions, technology, billing). Therefore, it needs to be professionally managed. Professional market data management addresses issues such as:
- Inventory management
- Contract management
- Cost management
- Change management
- Invoice Reconciliation & amp; Administration
- Permissions
- Report
- Budgeting
- Request management
- Technology management
- Vendor management
Mobile app
Financial data vendors typically also offer mobile applications that provide real-time market data to financial institutions and consumers.
See also
- The stock market data system
- Reference data (financial markets)
References
Source of the article : Wikipedia
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