Global Market Data for Agile Trading

Global Market Data for Agile Trading

June 6th, 2022 - Financial, Managed Hosting

By Jeff Mezger, Vice President of Product Management, TNS Financial Markets

In a world experiencing unprecedented upheaval and continuous change, market conditions can be volatile. Traders need to be at their most agile and responsive in order to react to rapid changes, and access to low-latency, real-time, full depth of book market data is essential. TNS has the infrastructure and partnerships to deliver this to its partners across the globe.

The TNS network is constantly expanding and improving, and TNS has recently announced that clients now have direct access to market data from all 16 Equity Options Exchanges in the United States. TNS now provides lowest-latency mutualized access to raw US data for exchange members and non-members alike. This adds to an ever-growing resource that spans the world from the US and Canada to Europe, Asia Pacific, Latin America and Africa, with ultra-low latency connectivity in colocated data centers, 125 points-of-presence (PoPs) and more than 2,800 financial community endpoints – a strong and reliable global infrastructure for the rapid and secure movement of market data.

These mutualized exchange connections save costs and reduce complexity for traders, enabling them to access the highest infrastructure specifications for reliable market data delivery at a cost tailored to their budget and latency requirements. TNS has registered data vendor status with all of the US Equity Options Exchanges, removing any need for traders to manage their own connectivity and exchange membership and delivering to clients the data they need for competitive trading operations.

Essential Market Data Infrastructure

What is the scale of the infrastructure provided by TNS? US Equity Options are segmented into five exchange groups. The Boston Options Exchange (BOX) operates one, Nasdaq operates six, the Chicago Board Options Exchange (CBOE) operates four, NYSE operates two and the Miami Exchange (MIAX) operates three.

The infrastructure required to access the high volumes of US Equity Options market data represents a substantial investment that would be out of reach for most traders. Data feeds for these exchanges require up to 20 gigabits per second for each location, with some needing as much as 40 gigabit bandwidth connections.

The TNS network has one of the fastest commercially available fiber networks in the New York metro area and dark fiber connectivity in the New York Triangle. Together with the ultra-low latency Layer 1 connectivity within its data centers, this provides a dark fiber backbone and all the necessary links to handle these high volumes of market data and deliver ultra-high-speed full depth of book data access to TNS clients.

The Value of Being a Vendor of Record

Data for rapid trading activity must be timely, reliable and accurate, and obtained within the budget of the organization. This tradeoff is at the heart of deciding what route to take in obtaining market data.

Establishing comprehensive international connectivity is time consuming and expensive. Traders need to ensure that they have excellent latency that will enable them to keep their competitive edge and maintain good relationships with exchanges on different continents, taking into account culture, language, and regulatory requirements in each jurisdiction.

Firms also need to be sure that they have the right levels of data access, from raw exchange trading data such as best price and last sale, all the way to order book data. Although for many traders Level 1 data will be sufficient, dealing with a registered vendor of record like TNS opens up the possibility of accessing more detailed feeds when required and removes layers of complexity and cost, delivering the data that traders need quickly and efficiently globally.

TNS’ market data access delivers raw market data and order routing for the world’s exchanges via a shared connection, substantially reducing the cost, complexity and lead time for customers who wish to expand their operations. Not only is the infrastructure taken care of, but exchange relationships are locally managed by TNS’ staff, combining vital cultural and language links with a deep knowledge of exchange technologies and processes. Partnering with TNS opens the door to straightforward, cost effective, single supplier access to a wealth of global market data.

TNS has been working as a worldwide provider to global companies in the most mission critical industries for more than 30 years, managing services in times of rapid change and supporting clients as they respond to new business conditions. The continued expansion of the TNS network and its global market data provision keeps TNS and its clients at the forefront of successful trading. Find out more by visiting https://tnsi.com/products/market-data/

Jeff Mezger is Vice President of Product Management at TNS with responsibility for its managed services for the financial industry. He oversees product development and strategy for market data, online and data center services.

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