path to digitalization for financial services · 2019-05-19 · webinar details on demand •a...

Path to Digitalization for Financial ServicesHow the Market Data Cloud Empowers Digital Innovation

Stephane Dubois

CEO and Founder

Xignite

Guest Speaker:

Jacob Morgan

Senior Analyst

Forrester

Agenda

How Digital is Changing Financial Services Jacob Morgan, Forrester

• Main drivers of digital from client expectations to evolving technology

• Four rules of how digital is changing the business

• Trends and predictions: how models are evolving in the digital ecosystem

• Recommendations and best practices

How Cloud Based Market Data Enables Innovation Stephane Dubois, Xignite

• How legacy market data infrastructure kills innovation

• Cloud-Based Market Data Distribution

• How Cloud APIs drive innovation

• Xignite introduction

2

3

Webinar DetailsOn Demand• A recording of today’s webinar will be available on-demand.

• You should receive an email next week with details to access the replay.

Presentation Slides• The slides will be sent to all attendees via email next week.

Q&A• If you have any questions, please feel free to submit them at any time.

• We will leave time at the end and answer as many questions as possible.

© 2017 FORRESTER. REPRODUCTION PROHIBITED. 4

Ecosystems and Collaborative Business Models

Jacob Morgan, Senior Analyst

December 2017

5© 2017 FORRESTER. REPRODUCTION PROHIBITED.

The path to purchase

has altered


How you access your

account and where you

buy is changing


…and who you are

looks different

8© 2017 Forrester Research, Inc. Reproduction Prohibited

Digital reinvents the rules of

business


Digital experience

Deliver experiences

that are easy, effective,

and emotional.


Cleo blends AI with chat to drive financial wellbeing

Source:www.meetcleo.com


Digital operations

Reconceive products

and capabilities to

deliver better outcomes.

Digital experience

Deliver experiences


and emotional.


Source: Nicolas Lannuzel

© 2017 Forrester Research, Inc. Reproduction Prohibited

https://www.flickr.com/photos/nlann/


Digital operations

Reconceive products

and capabilities to


Digital experience

Deliver experiences


and emotional.

Digital ecosystems

Build platforms and

partnerships to

accelerate and scale.


Alipay partners prolifically…

Source: Forrester Research


Digital operations

Reconceive products

and capabilities to


Digital experience

Deliver experiences


and emotional.

Digital ecosystems

Build platforms and

partnerships to


Digital innovation

Continuously improve

and break through at

the digital frontier.


Source: The Garage/Capital One

© 2017 Forrester Research, Inc. Reproduction Prohibited


Digital operations

Reconceive products

and capabilities to


Digital experience

Deliver experiences


and emotional.

Digital ecosystems

Build platforms and

partnerships to


Digital innovation

Continuously improve

and break through at

the digital frontier.


Industry conditions favour ecosystems

Regulators CustomersDigital

giantsTechnology


Digital ecosystems challenge traditional operating models…

Analog value chain

Supplier ProductionSupply

ChainMarketing Customer

Source: Forrester Research “Disruptors Belong In Your Digital Ecosystem” report

https://www.forrester.com/Disruptors+Belong+In+Your+Digital+Ecosystem/fulltext/-/E-RES128581


…by blurring the lines between different parts of the value chain

Source: Forrester Research “Disruptors Belong In Your Digital Ecosystem” report

R&D

Production

Supply Chain

Marketing

Sales

Customers

Suppliers

https://www.forrester.com/Disruptors+Belong+In+Your+Digital+Ecosystem/fulltext/-/E-RES128581


Digital disruptors like Wealthfront exist thanks to APIs –

sourcing capabilities from their ecosystem

Source: www.wealthfront.com/plan.


…PayPal builds ‘the operating system of commerce’

modest

Acceptance

Card

Mobile payments

& wallet

Money transfer

Carrier & bill

payment

Source: Disrupting Finance: Digital Wallets Forrester report

https://www.forrester.com/report/Disrupting+Finance+Digital+Wallets/-/E-RES116772


Ecosystems will become

mission critical


Ecosystems and APIs head business priorities

Source: Forrester’s Q3 2016 Global Financial Services Architecture Online Survey; Base: 107 global financial services decision makers

“Do you use these technologies in pilots, major deployments, or do you see

them as critical for your business”


Various patterns are emerging

Product manufacturers

-as-a-service companies

Curators

Marketplaces

Bank-as-a-service

Source: Forrester research The Digital Banking Imperative report

https://www.forrester.com/report/The+Digital+Banking+Imperative/-/E-RES135946

http://www.dwolla.com/


Product manufacturers




-as-a-service companies (B2B)



http://www.dwolla.com/


-as-a-service companies (B2C)





Curators

Money transfers: Transferwise

Investment: Vaamo

Savings: Raisin

Insurance: Clark



Marketplaces


“a marketplace, shielded by a banking licence” (Fidor COO)



Bank-as-a-service




Recommendations


A more open approach reframes business strategy

Source: How APIs Reframe Business Strategy

Business

Customers

Channels

Efficiency

Partners

Traditional business Open business

https://www.forrester.com/report/How+APIs+Reframe+Business+Strategy/-/E-RES119426




Business

Customers

Channels

Efficiency

Partners

Competencies






Business

Customers

Channels

Efficiency

Partners

Competencies

Ecosystems

Relationships

Leverage

Connections




Which Ecosystems?• Yours• Your customers’• New, adjacent ones



Business

Customers

Channels

Efficiency

Partners

Competencies

Ecosystems

Relationships

Leverage

Connections




Which Ecosystems?• Yours• Your customers’• New, adjacent ones



Business

Customers

Channels

Where design for external

integration begins

Efficiency

Partners

Competencies

Ecosystems

Relationships

Leverage

Connections




Capital One majors on identity

Source: Unlock The Business Value Of Your API Strategy Forrester report

https://www.forrester.com/report/Unlock+The+Business+Value+Of+Your+API+Strategy/-/E-RES136271


“We are building a forest, not a palace.

Rather than establish everything by

ourselves, we create an ecosystem that

nurtures things to grow within it.”

Xiaolong Zhang, founder, WeChat

FORRESTER.COM

Thank you© 2017 FORRESTER. REPRODUCTION PROHIBITED. 42

Jacob Morgan

+44 20 7323 7736

[email protected]

How Cloud-based Market Data Enables Innovation

Stephane Dubois, CEO and FounderXignite

The Problem: Legacy Hinders Innovation

Legacy Technologies

Database Silos

Rigid Infrastructures

Point-to-Point Interfaces

Proprietary Technologies

No Innovation

High Infrastructure Costs

Lack of Transparency

Compliance Risks

Vendor Lock-in

Investment

Analytics

Trading &

Capital Markets

Compliance &

Risk

Wealth

Management

Reporting &

Accounting

Mid-Office Back-Office

TERMINALS

Front-Office

FEEDS

Mid-Office

FILES

Back Office

44

Front-Office

Digital Innovation Drives Success

Source: Lessons from the App Masters. Apigee Institute. 2015 45

How Infrastructure Eats Innovation

Much Time and Effort is Spent Building Up Infrastructure & Integration

Design

Source Data

Provision Rack Space

Acquire Hardware

Configure Hardware

Deploy Hardware

Source Connectivity

Provision Connectivity

Test Connectivity

Install Database

Test Feed/Files

Process Feeds/Files

Load Database

Sync database

Test Data Integrity

Implement Redundancy

Provision for Scalability

Implement Monitoring

Integrate Data

Test

Leaving Little Time for Design and Innovation

Data Infrastructure Design Other

46

Slow Time To Market Kills Innovation

Source: Lessons from the App Masters. Apigee Institute. 2015 47

Innovation Momentum

48

CLOUD APIS

Fintech Apps

TERMINALS

Front-Office

FEEDS

Mid-Office

FILES

Back Office

API Generations

49

Program

Library

Program

Program

Program

Server

Program

Cloud

Pre-HistoryExternal Libraries

(60’s)

1st Generation APIsRPCs

(70’s-80’s)

Network

2rd Generation APIsWeb APIs(90’s-00’s)

3h Generation APIsCloud APIs(00’s-10’s)

▪ Local▪ Not Sharable▪ Complex▪ Not Scalable

▪ Remote▪ Sharable▪ Complex▪ Not Scalable

▪ Internet▪ Shared▪ Simpler▪ Scalable

▪ Internet▪ Mutualized▪ Simple▪ Zero-Footprint

Internet Internet

The World of

Delayed/EOD Data

The World of

Real-Time Data

The World of

Low Latency

The World of

Delayed/EOD Data

The World of

Real-Time Data

The World of

Low Latency

Cloud APIs Can Replace Legacy

Legacy Data Distribution Landscape

106

105

104

103

100

10

1

10-6 10-5 10-4 10-3 0.01 0.1 1 10 100 103 104

New Market Data Distribution Landscape

10-6 10-5 10-4 10-3 0.01 0.1 1 10 100 103 104

Latency (sec)

Fre

quency (

update

s/s

ec)

Low Latency

Feeds

Cloud APIs

Low Latency

Feeds

Real-Time

Feeds

EOD

Files

Delayed

Feeds

Terminals

50

How APIs Help Innovation

Easy, Zero Footprint APIsSimplify Application Development

Design

Source Data Integrate Data

Test

And Free Time and Resources For Innovation

Data Infrastructure Design Other

51

Benefits

Reducing Costs

• Eliminate in-house hardware and software

• Mutualize infrastructure

• Remove vendor lock-in

• Improve controls and reduce spend

Driving Innovation

• Simplify and speed development

• Ease access to information

• Enable focus on business value

• Helps improve user experience

52

The Solution: Market Data Cloud

Mutualized Data

No Infrastructure

Lower Costs

Rapid Time to Market

Painless Deployment

Easy Innovation

Control over Data

Optimization of Spend

Usage Transparency

Cloud Data

APIs

Cloud Data

Distribution

Digital Channels Enterprise & EDM Systems

Hosted DataLicensed Data

Emulated APIsOpen APIs

Investment

Analytics

Trading &

Capital Markets

Compliance &

Risk

Wealth

Management

Reporting &

Accounting

Mid-Office Back-OfficeFront-Office

53

Innovation Track RecordRobo-Advisors & Robo-Platforms

Brokerage & Trading

Media

Retirement

Investor Reporting, IR & HR

Lending & Payments

Wealth & Portfolio Management

Compliance

Horizontal Enterprise Applications

Terminals

IoTE-Commerce Enterprise Financial Reporting

Research & Analytics

Social & Analytics

Search Engines

Back-Office & Processing

54

http://www.seekingalpha.com/

http://www.zipcar.com/

http://www.oppenheimerfunds.com/

http://www.starbucks.com/

Enterprise

Systems

Digital

Channels

Two-Prong Cloud Adoption Strategy

Investment

Analytics

Trading &

Capital Markets

Compliance &

Risk

Wealth

Management

Reporting &

Accounting

Mid-Office Back-OfficeFront-Office

DRIVE INNOVATION

Use Cloud APIs to power next-generation digital channel and work

your way through the front and mid-office application stack.

GAIN CONTROL

Centralize your reference data in the cloud and use emulated

APIs to control the distribution of data to legacy systems.

55

Example: Wealth Management Application

Integrate disparate sources

Multiple data types

Inconsistent legacy technologies

Inconsistent symbologies

Complex programming

Tons of infrastructure

Infrastructure re-caching

Internal provisioning issues

Large capex and opex

56

TRADITIONAL APPROACH: INTEGRATE MULTIPLE SOURCES

ColocationColocation

EXCHANGES VENDORS

Databases

Handlers

Databases

Analytics Engines

Databases

Tick Databases

App Servers

Cache Servers

Fanout Servers

Messaging Servers

Processing Engines

Search Engines

Handlers

Feeds Files

Proprietary Processing Engines

Vendor Proprietary Servers

Redundancy

Compliance

Silos

Personnel

Upgrades

Lock-inPoint to Point

Legacy

Historical Master Fundamental Real-Time

Historical Master Fundamental Real-Time

Example: Wealth Management Application

57

TRADITIONAL APPROACH: INTEGRATE MULTIPLE SOURCES


EXCHANGES VENDORS

Databases

Handlers

Databases

Analytics Engines

Databases

Tick Databases

App Servers

Cache Servers

Fanout Servers

Messaging Servers

Processing Engines

Search Engines

Handlers

Feeds Files



Redundancy

Compliance

Silos

Personnel

Upgrades


Legacy

NEW APPROACH: CLOUD INTEGRATION

▪ Simple REST APIs

▪ Quick integration

▪ One-Stop-Shop

▪ Consistent behavior

▪ Consistent symbology

▪ No capex, no worries

Realtime DataAPIs

FundamentalAPIs

Historical DataAPIs Master

Data

APIs

Example: Streaming Data To Mobile Users


Peak activity scaling

Software licensing

Custom processing

Complex programming

6-12 months lead-time

Scaling buildup lead time

Monitoring required


58

TRADITIONAL APPROACH: IN HOUSE


EXCHANGES VENDORS

Databases

Handlers

Databases

Analytics Engines

Databases

Tick Databases

App Servers

Cache Servers

Fanout Servers

Messaging Servers

Processing Engines

Search Engines

Handlers

Feeds Files



Redundancy

Compliance

Silos

Personnel

Upgrades


Legacy


EXCHANGES VENDORS

Databases

Handlers

Databases

Analytics Engines

Databases

Tick Databases

App Servers

Cache Servers

Fanout Servers

Messaging Servers

Processing Engines

Search Engines

Handlers

Feeds Files



Redundancy

Compliance

Silos

Personnel

Upgrades


Legacy

▪ HTTP-based API

▪ Deploy instantly

▪ Straight to device

▪ High reliability

▪ Scalable to millions


NEW APPROACH: CLOUDSTREAMINGTRADITIONAL APPROACH: IN HOUSE

CloudStreaming

Example: Streaming Data To Mobile Users

59

Example: Engaging Clients with Market Alerts


Huge amounts of data to process

Significant integration effort

Peak scaling challenges

Complex programming

6-12 months minimum lead time

Hard to expand

Monitoring required


60



EXCHANGES VENDORS

Databases

Handlers

Databases

Analytics Engines

Databases

Tick Databases

App Servers

Cache Servers

Fanout Servers

Messaging Servers

Processing Engines

Search Engines

Handlers

Feeds Files



Redundancy

Compliance

Silos

Personnel

Upgrades


Legacy

Capture Rules

Process Rules

Cross Market Data

Notify Clients

Example: Engaging Clients with Market Alerts

61



EXCHANGES VENDORS

Databases

Handlers

Databases

Analytics Engines

Databases

Tick Databases

App Servers

Cache Servers

Fanout Servers

Messaging Servers

Processing Engines

Search Engines

Handlers

Feeds Files



Redundancy

Compliance

Silos

Personnel

Upgrades


Legacy

Capture Rules

Process Rules

Cross Market Data

Notify Clients

▪ Easy REST API

▪ Call-Back APIs

▪ Deploy instantly

▪ Flexible Alerts

▪ Scalable to millions


NEW APPROACH: CLOUDALERTS

CloudAlerts

Internal Systems

Xignite: What We Do

Vision: Empower and inspire the future of finance.

Mission: We make market data easy. Period.

API API API

API API API

API API API

API API API

API API API

API API API

API API API

Unified Cloud Solution

Control

Scale

Integrate

Simplify

Market Data CloudLegacy Data Sources

Developers & Applications

62

Xignite Differentiators

Any Delivery

CloudAPIs, CloudStreaming,

CloudAlerts, CloudFiles,

CloudWidgets

Any Asset Class

Equities, Funds, Fixed Income,

Options, Futures, Forex, FX, Credit

Any Frequency

Real-time, Delayed, End-of-Day,

Historical

Any Data Type

Quotes, Valuation, Fundamentals, Master, Ticks &

Bars, Analytics, etc.

Any Market

NORTHAM, EMEA, LATAM, APAC

Any Licensing

Exchange, Licensed, Proprietary,

Contributed, Hosted40B 71B

140B

457B

1.5T

2012 2013 2014 2015 2016

Historical Usage(API Requests/Year)

Ease of Use Integration Scalabilityu v w

63

Data Coverage

64

Real-Time Data

Fundamental Data

Historical Data

1.2MEquities

250KFunds

6,500ETFs

3.5M Fixed Income

5MDerivatives

27KForex

Master

Data

• Identifiers

• Descriptors

• Classification Information

• Quotes

• Historical Prices

• Intraday Ticks and Bars

• Analytics

• Market Movers

• IPO Details

• Corporate Actions

• Symbol Changes

• Delisted Securities

• Historical Financials

• Analyst Estimates

• Earnings Announcements

• Economic Calendar

• News

• Etc.

Global Coverage

65

Multiple Delivery Methods

CloudAPIs

• HTTP REST APIs

• XML, JSON, CSV

•For most apps

CloudFiles

• FTP/SFTP Files

• XML/CSV output

• For large data sets

CloudStreaming

• HTTP Streaming

• JSON patch

• Stream to device

CloudWidgets

• HTML5 Widgets

• Web Insertion

• For web sites

CloudAlerts

• Rule-based Alerts

• Via API call-backs

• For high volumes

CloudAddin

• Simple Paradigm

• Easy Excel Add-in

• For end users

www.xignite.com – San Mateo, California – Copyright

66

About Xignite

Making Market Data Easy • Cloud-based market data solutions

• Targeting fintech and financial services

• 1000+ customers in 55 countries

Track Record of Innovation• 1st commercial API ever

• 1st to bring market data to the public Cloud

• 1st cloud-based market data distribution

• 1st market data API to reach 1 trillion hits/year

Proven & Fast-Growing• 55 employees

• Offices in San Mateo and New York City

• VC-Backed - $37M raised in 3 rounds

• Funded in 2006

BNY Mellon WTC Trading Floor Displays, New York City – Powered by Xignite

Webinar RecapOn Demand• A recording of today’s webinar will be available on-demand.

• An email will be sent next week with details to access the replay.

Presentation Slides• The slides will be sent to all attendees via email next week.

Q&A• Please feel free to submit any questions now.

• We will answer as many as possible and aggregate the Q&A to be emailed next week.

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path to digitalization for financial services · 2019-05-19 · webinar details on demand •a...

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