For this report, Aite Group conducted interviews with market data heads at 10 firms ranging from small, high frequency trading shops to some of the largest buy-side and sell-side firms in the world. They also spoke with several exchanges, hosting providers, and market data providers. Key findings include the following:
â¢ Aite Group expects U.S. equities message traffic to double from current volumes in the next two years.
â¢ U.S. equity data storage needs are currently growing 18% per month.
â¢ Market fragmentation in Europe (and eventually Asia) will cause multiple repeats of current U.S. equities market data issues.
â¢ Foreign exchange (FX) storage requirements are growing at twice the rate of equities storage requirements.
â¢ There is a high level of interest by electronic trading firms to add unstructured content into trading models.
âWhile volatility and a pullback from equities have caused some recent slowing to occur, we expect markets to double data volumes in the next two years,â commented Adam HonorÃ©, senior analyst at Aite Group. âWhile firms may currently be managing their infrastructure to support a two-to-one capacity ratio for accommodating existing peaks, smart planners are moving to three-to-one or even four-to-one ratios to prepare for future market needs.â
âTo achieve success in the financial markets, firms need to cope with dramatic rises in market data without sacrificing system performance. Aiteâs findings confirm the benefits of deploying an ultra performance platform like Vhayu Velocity, developed specifically for processing market data,â said Jeff Hudson, CEO of Vhayu Technologies. âIt can also address increasing storage requirements in conjunction with Velocity Squeezer, the first hybrid hardware/software solution that delivers 4:1 data compression and 75% storage-related cost savings with no performance penalty and enterprise-level fault tolerance.â