In the last year, a flurry of financial services technology players have come to the table with various dishes catering to clients’ palates — especially for market data and FX platforms.
According to Max Bowie at Inside Market Data, “small companies are starting to quietly emerge … to serve specific data needs”. Two key drivers of this emergence of new market data players per Bowie:
- Start-ups including providers of historical tick data, real-time volume and spread analysis of raw tick trading data, near-real-time fixed income price evaluation data, commodities shipping and trade flow information. Per Bowie, this is “a big indicator of confidence in the marketplace that people are willing to make the leap and establish their own venture.”
- Democratization of market data — companies are realizing that there is “an audience of millions of potential consumers, plus the professionals that serve them” and either are white labeling their offerings or providing a bevy of data services direct to average investors and the new generation of financial professionals using the web and social media
On the FX platform front, there’s activity surrounding new entrants in the global exchange market. This is creating quite a stir in the FX market. New platform players including Currenex, traFXpure, FXall, FX Connect, tpSpotdeal, Deutsche Bank’s Autobahn and others have spawned new market segments including the interbank market, platforms that link users to multiple banks, single-bank proprietary platforms and aggregator platforms — providing a lot of choices for some and targeted solutions for others.
The net-net? Choice. Companies are listening to clients and have a better understanding to what they need and are demonstrating that with targeted solutions to address their problems. Considering this is February, let’s see what other tasty dishes technologists serve up for the rest of 2013…