THE CLOUDIFICATION OF CAPITAL MARKETS. How Market Data APIs Allow Banks to Innovate At The Speed of Fintech

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1 THE CLOUDIFICATION OF CAPITAL MARKETS How Market Data APIs Allow Banks to Innovate At The Speed of Fintech

2 ABOUT XIGNITE Making Market Data Easy Cloud-based market data solutions Targeting fintech and financial services providers customers in 55 countries Track Record of Innovation 1 st commercial API ever 1 st to bring market data to the public Cloud 1 st cloud-based market data distribution platform 1 st market data API to reach 1 trillion hits/year level Proven & Fast-Growing 55 employees Offices in San Mateo and New York City $37M raised in 3 rounds from Altos Ventures, StarVest Partners and QUICK Corp. (NIKKEI) Originally funded in 2006 BNY Mellon WTC Trading Floor Displays, New York City Powered by Xignite

3 UBS TRADING FLOOR STAMFORD, CT 2007

4 UBS TRADING FLOOR STAMFORD, CT 2015

5 Source: Bloomberg

6 MARKET DATA INNOVATION TERMINALS FEEDS FILES CLOUD APIS Front-Office Mid-Office Back Office Fintech Apps

7 APIS ARE 17 YEARS OLD XMLHttpRequest First Web API Implementation First API First API First Commercial API First API First API First API First Cloud API IFRAME Tag Complex resource embedding First API (Maps) First API First API IMG Tag First pointer to resources on external servers 1996 Flash Complex resource embedding First API S3 EC2 First API FINTECH WAVE Feb-00 Nov-00 Jul-02 Aug-03 Jul-04 Jun-05 Mar-06 Aug-06 Sep-06 Oct-08 Oct-08 Oct-10 Nov Oct-02 Feb-05 Dec-05 Jun-07 Jun-08 Sep-12 HTML W3C Standard CORBA First standard RPC JavaScript First smart client capabilities XML W3C Standard SOAP W3C Standard REST Roy Fielding publishes his dissertation on REST JSON First Spec Jeff Bezos API Memo AJAX First smart client logic JSONP Call a server without a server iphone 1 App Store HTML5 First Spec

8 WEALTHFRONT WAS ENABLED BY 3 TECHNOLOGIES: ETFs, TRADING APIs, AND MARKET DATA APIS. ANDY RACHLEFF CHAIRMAN & FOUNDER

9 AWS IS 11 YEARS OLD

10 WHAT S A CLOUD API? Simple To Use Standard Based Unlimited Power San Mateo, California Copyright All Rights Reserved

11 UNLEASHING INNOVATION

12 MARKET DATA LEGACY

13 THE EFFECT: NO INNOVATION San Mateo, California Copyright All Rights Reserved

14 NEW THINKING MARKET DATA Cloud

15 HISTORICAL PREMISE: REPLICATION DATA CONSUMERS Data Vendor Feeds Files Terminals DATA SOURCES

16 NEW PREMISE: MUTUALIZATION NEXT GENERATION APPLICATIONS OPEN CLOUD ANALYTICS APIS OPEN CLOUD DATA APIS DATA SOURCES

17 WHY MARKET DATA CLOUD APIS MATTER Reducing Costs Eliminate inhouse hardware and software Mutualize infrastructure Remove vendor lock-in Improve controls and reduce spend Driving Innovation Improve user experience Speed development Enable focus on business value Increase access to information San Mateo, California Copyright All Rights Reserved

18 XIGNITE CLOUD APIS Ease of Use Integration Scalability Any Delivery Methods CloudAPIs, CloudStreaming, CloudAlerts, CloudFiles, CloudWidgets Any Asset Classes Equities, Funds, Fixed Income, Options, Futures, Forex, FX, Credit, etc. Historical Usage (API Requests/Year) Any Data Frequency Real-time, Delayed, End-of-Day, Historical Any Data Type Quotes, Valuation, Fundamentals, Master, Ticks & Bars, Analytics, etc. 1.5T Any Market NORTHAM, EMEA, LATAM, APAC Any Data Licensing Exchange, Licensed, Proprietary, Contributed, Hosted 457B 40B 71B 140B

19 5 Million Data APIs Served

20 THE DATA MANAGEMENT PROBLEM Capital Markets Sell-Side Investment Banking Compliance Buy-Side Risk Management Advisory Services Legacy Technologies Database Silos Rigid Infrastructures Point-to-Point Interfaces Complex Requirements Lack of Transparency High Tech & Data Costs Compliance Risks Allocation Wars Vendor Lock-in

21 THE XIGNITE MARKET DATA CLOUD Capital Markets Digital Channels Sell-Side Investment Banking Open APIs Compliance EDM Systems System Services Buy-Side Risk Management Advisory Services Existing Systems Emulated Interfaces Data Entitlements Usage Tracking Usage Reporting Usage Optimization User Management Data Management Data Distribution Data Catalog Data Caching Data Integration Master Data Real-Time Data Data Services Historical Data Fundamental Data Bulk Files Per Security Collection Services Pub Sub Data Feeds Centralized data in the Cloud. Painless emulated implementation. No infrastructure needed. Granular control over entitlements. Transparency on data usage consumption. Easy cost allocation and control. Optimization of spend.

22 Benefits Gain control and transparency over your data consumption Centralize the storage, tracking, and distribution of first-level data Eliminate legacy costs and risks Optimize data spend and costs Intelligently analyze usage and consumption patterns and eliminate duplicate data requests Achieve ROI within six months based on levels of optimization Facilitates responses to new regulatory demands Centralize data that has traditionally been scattered around the firm Enable users to fulfill their own demands for data Fuel innovation by making current data easily available Make existing licensed data easily available to next generation applications with APIs