{"id":2786343,"date":"2023-07-26T07:46:11","date_gmt":"2023-07-26T11:46:11","guid":{"rendered":"https:\/\/wordpress-1016567-4521551.cloudwaysapps.com\/plato-data\/joburg-exchange-pitches-data-services-to-bourses\/"},"modified":"2023-07-26T07:46:11","modified_gmt":"2023-07-26T11:46:11","slug":"joburg-exchange-pitches-data-services-to-bourses","status":"publish","type":"station","link":"https:\/\/platodata.io\/plato-data\/joburg-exchange-pitches-data-services-to-bourses\/","title":{"rendered":"Jo\u2019burg exchange pitches data services to bourses"},"content":{"rendered":"
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Johannesburg Stock Exchange, the largest stock exchange in Africa, is launching a joint venture with market data vendor big xyt that aims to help other bourses make better use of their data.<\/p>\n

The JV, called Trade Explorer, is the result of JSE\u2019s efforts to make its wholesale data readily available to its local ecosystem of brokers, traders and investors, says Mark Randall, director of information services.<\/p>\n

Like other bourses, JSE has invested in cloud architecture and front-end APIs and other ways to sell its data wholesale to industry players. \u201cBut this is about data analytics to facilitate trading,\u201d he says of the new venture. \u201cNot every sales trader or investor has the interfaces and the PhDs to integrate this data into their system. We put it on their desktop.\u201d<\/p>\n

Richard Hills, big xyt\u2019s UK-based head of client engagement, says broker-dealers and other market participants rely on exchanges for critical information such as knowing their market ranking and market share \u2013 which can influence their liquidity and ability to transact with their own clients. Often they have to scrounge around across dozens of market venues to get this information, and then build a process to make sense of it.<\/p>\n

With Trade Explorer they could log in from their desk and get a current view from across all their venues, Hills says. \u201cThey can then feed this data into their trading algorithms.\u201d<\/p>\n

Leveraging JSE<\/h4>\n

JSE has been working with big xyt for about 18 months to develop this capability for the South African market. Trade Explorer is not meant to export JSE data to other markets, or create a single global hub for all this information. Rather, it\u2019s meant to take the methodology that the partners developed and sell it to other exchanges, so they can make it easy to deliver their data to their own market participants.<\/p>\n

\u201cOther exchanges use us as a reference,\u201d Randall said.<\/p>\n

For big xyt, Trade Explorer is a continuation of its core business of selling data services to stock markets and other trading venues, which can range from setting up private cloud computing to more advanced data services.<\/p>\n

\u201cExchanges are looking at their cloud strategy and how to deliver data in a commercial way to brokers and investors,\u201d Hills said.<\/p>\n

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The partners say they are not trying to compete with established exchange-focused vendors such as Nasdaq and Millennium (part of LSEG), which provide matching engines for most of the world\u2019s trading venues.<\/p>\n

Randall also says JSE doesn\u2019t expect its presence in the JV to be a barrier to sales \u2013 that other bourses won\u2019t view it as a competitive threat.<\/p>\n

\u201cWe compete for new issuance and for liquidity,\u201d he said, \u201cbut there\u2019s no value-add in each exchange building its own data-analytics system from scratch.\u201d<\/p>\n