Object Trading, MarketPrizm Ally for Managed DMA, Market Data

The service will combine Object Trading's FrontRunner direct market access suite with MarketPrizm's global infrastructure network, co-location services and market data, to provide a single managed market data and order execution offering for buy- and sell-side clients in Europe, Asia and North America.

As part of the deal, MarketPrizm will normalize market data from multiple venues into its MPAPI standardized API format. Object Trading then takes this data and translates it into the vendor's own API format, says Gerry Turner, executive director at Object Trading.

"This means our customers don't have to do any work. Suddenly they get vendor-of-record market data from what we call "away" markets. So if they are sitting in Singapore trading on the Singapore Exchange but also want to see what is happening on the Osaka Securities Exchange, we can transport that data into Singapore, which is a helpful capability," Turner says.

Previously, Object Trading has only been able to make client-specific market data available on its platform-i.e. data from the venue where a client is co-located-as part of its managed services offering, but will now be able deliver market data from other venues to the co-location site.

"We do offer market data directly from exchanges, which is fine if you just are just executing a low-latency algorithmic trading strategy within limits.... But now, if a customer is trading a benchmark such as the Nifty (the National Stock Exchange of India's benchmark equity index, which trades on both SGX and OSE) but is only a member of SGX, we can now deliver OSE data," Turner says.

After a nine-month negotiation and integration process, the joint service is now live, and the vendors have already signed a number of buy-side firms that are "aggressively" growing their businesses to new geographic locations, and are also in talks with sell-side firms looking to offload parts of their infrastructure, Turner says. "It is becoming more cost effective and efficient for these firms to push their infrastructure outside their shop," he says, while a platform-as-a-service provides a more focused solution than traditional outsourcing.

MarketPrizm, meanwhile, is now able to offer execution services as part of its managed services offering, in line with the vendor's strategy to provide end-users with a capability-rich ecosystem, says MarketPrizm commercial director Jay Hibbin in a statement. "By combining MarketPrizm's market data and managed infrastructure across Europe and Asia with Object Trading's market access technology and expertise, we make it easier and faster for firms to trade in the markets," Hibbin says.