Use Case | Advanced Insights
TickSmith’s Marketplace Advanced Insights gives Omega Securities and Nasdaq the bigger picture on benchmarking
TickSmith’s Marketplace Advanced Insights includes analytics which track market liquidity and market activity by firm, trading venue, instrument, or any combination of the above. With these advanced metrics, trading venues gain insight on member participation and adapt business strategies to attract market flow. Market Makers also use the solution to ensure market participation activity is in line with trading strategies.
The Marketplace Advanced Insights Solution is one of three analytical modules available in TickSmith’s award-winning enterprise cloud platform. The GOLD Platform is used by clients for managing and leveraging data at scale. Omega Securities and Nasdaq are using the Solution to optimize their strategies and performance.
Exchange Data Feeds
Omega Securities Inc., a Canadian ATS (Alternative Trading System) and operator of two marketplaces that account for more than five percent of Canadian equities trading, uses TickSmith’s Marketplace Advanced Insights analytics to evaluate the trading efficacy & liquidity of all venues in Canada. With over 65 dealers that trade on Omega including known names such as Goldman Sachs Canada and Merrill Lynch Canada, a full on data-driven strategy is necessary for Omega to compete in the ATS space and to continually achieve the highest quality execution services for their clients.
Nasdaq is dedicated to making Canadian markets more efficient, more accessible and more affordable. Nasdaq Basic Canada is a new technical delivery option for Level 1 market data from all three Trading Books available in a single market data feed. After saving global market participants US$253 million with Nasdaq Basic US, Nasdaq Basic Canada extends the cost savings and value proposition to the Canadian marketplace.
As an ATS, Omega is concerned about liquidity and trading activities going through the exchange. The analytics and metrics help measure their competitive advantages and services. The metrics are derived from comprehensive market data of all Canadian equities trading venues, which is normalized and processed by the GOLD Platform, and then implemented through a dashboard to create market insight analytics.
Nasdaq uses TickSmith’s Marketplace Analytics Insights containing Canadian Equity Market Data, Order Book Replay, & Broker and Venue-level Analytics to enhance their current product. The resulting configuration of analytics permit Nasdaq to benchmark their Nasdaq Basic against other Canadian trading venue data. Market participants using Nasdaq Basic Canada can utilize TickSmith data to better understand at a granular level how the product is helping them achieve their goals.
Omega is able to generate useful analytic reports to external brokers instantly. These specific and granular analytics also help the ATS make structural decisions. For example, on pricing and fees. The ATS is able to take advantage of the Solution’s 30 statistical correlations and 52 out-of-the-box complex analytics, which can be visualized on screen as a line chart or heatmap. Omega Securities also has the capability to enable artificial intelligence and machine learning on the data, through API access.
Before using Marketplace Advanced Insights, Nasdaq was using Excel sheets for their analytics data. They can now easily measure their performance against their peers using the platform’s web dashboard and data access tools.
“Our work with TickSmith provides essential Nasdaq Basic Canada analytics that allows users to track market activity by firm, trading venue, instrument, or any combination to evaluate market liquidity,” says Dan Kessous, Vice President of Product Development and Head of Nasdaq Canada. “In addition, NBBO metrics let us evaluate the trading efficacy and liquidity of all venues in Canada.”
A Solution Built for Brokers & Exchanges
TickSmith’s Advanced Marketplace Insights Solution help brokers get the necessary data to compare their performance against other brokers. Exchanges can measure their performance against other exchanges. Gaining the competitive edge using a data-driven strategy is necessary for all Capital Market participants to get the bigger picture on benchmarking.
Clients like Omega and Nasdaq use TickSmith’s Advanced Marketplace Insights Solution to derive higher analytics for their business decisions, while skipping all the hassles of building their own infrastructure for data collection and normalization.