Market data services continue to supply futures traders' demands on higher global access, extra functionality and higher efficiency. Being aware of the effects of economic unsteadiness or uncertainty on several establishments, services are aiming to create something that will provide more yet with lower cost. This led them to create solutions such as a hosted market data service.
How Does A Hosted Market Data Service Work?
The infrastructure required for electronic futures trading is not that easy to create. Aside from complete access to the data inside a certain provider's historical database, traders' need to be provided with the software, equipment and communication protocols for publish and subscription of real-time data.
Service providers can outsource the operation, maintenance and ownership of the electronic trading infrastructure using a hosted market data service. These services can provide both the front-end trading software and the infrastructure needed to direct trades to an exchange. These services are equipped with the necessities for electronic trading such as servers, telecom services, customized software tools and communication hardware.
To recover the expenses incurred on the necessities of electronic trading as well as earn money, these services may require payment for the front-end software as well as access to their data. This way, service providers are able to create a global network of exchange gateways in which traders can easily connect to various exchanges.
In addition, a hosted market data service has been able to enhance efficiency, increase productivity and reduce costs by creating massive exchange connections that have a sturdy telecom network.
Benefits Of A Hosted Market Data
1. Performance - As the electronic trading grows so has the need for speed and accuracy. It is expensive to create a trading infrastructure that can work with low-latency connections supplied by exchanges. However, this is possible to various providers or services.
A hosted service or provider can connect directly to exchanges then lease and assemble trading infrastructure at the exchange matching engine setting. Furthermore, it can create various exchange gateways all over the world thus providing market participants the quickest route to an exchange.
2. Scalability - Hosted solutions supply services or providers with a convenient way to scale both the traders' and exchanges' access. After a service or provider connects with an exchange, traders will just undergo a few system configurations as well as documentations until they can perform trade on a new exchange.
3. Maintains Quality - These services or providers are able to reduce cost without sacrificing quality. In addition, their solutions allow an immediate access to the global market.
4. Account Management - They have built-in management tools. They allow users to conveniently access these providers' or services' database as well as access users' personal accounts.
Many companies or establishments consider acquiring aid from a hosted market data service one of the solutions to cut costs. A certain service or provider can supply satisfactory value and functionalities such as access to worldwide exchanges as well as the capacity to adjust as needs develop.
Market analysts, John Conejos shares your concern on the growing costs of market data. He wishes you to know that Derivative Trading Systems understands how the current economic condition is pressuring most establishments into reducing market data costs. Visit now Derivative Trading Systems and learn how they maintain data quality and reduce the cost of this data.
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