The NASDAQ OMX Group, Inc. (NASDAQ:NDAQ), the world’s largest exchange company, and Xignite, Inc., the leading cloud services provider of on-demand data distribution technologies, today announced that NASDAQ has selected the XigniteOnDemand platform to build NASDAQ Data On-Demand, a cloud-based computing solution for historical tick data distribution.
NASDAQ plans to launch NASDAQ Data On-Demand in the second half of 2010 to provide easy and flexible access to large amounts of detailed historical NASDAQ Level 1 trade and quote data for all U.S.-listed securities. Tick data is increasingly used in quantitative environments for back testing of algorithmic trading strategies. As the securities trading industry pushes the limits of high frequency trading, algorithms require ever more rigorous back testing and fine tuning based on actual historical data. Obtaining and collecting tick data can be onerous and time-consuming as firms are required to establish feeds and maintain large amounts of data on-hand. By providing this data on-demand and allowing it to be purchased on-line, NASDAQ Data On-Demand will make it easier than ever for firms to back-test their strategies.
“We are always looking to reduce costs of consuming data,” said Randall Hopkins, NASDAQ OMX’s Senior Vice President of Global Data Products. “Today our customers spend a large amount on technology infrastructure, not the market data itself. With NASDAQ Data On-Demand, we want to drastically cut data management costs by running the technology infrastructure on the cloud for our clients and delivering to them the data they need, when they need it, and how they need it.”
Unlike traditional means of market data delivery, such as feeds and files, on-demand market data distribution gives applications a way to cherry pick the specific subset of data that the application needs with pinpoint accuracy. Instead of combing through very large data sets of historical tick data, developers will be able to program their applications to select very specific data sets and obtain them on-demand and process them instantly. NASDAQ Data On-Demand will also allow clients to download large tick data subsets on a scheduled basis.