TORONTO, Can. -- The commercial technology arm of NYSE Euronext said it began marketing a Windows plug-in that will deliver market data in real time to the desktop computers of traders.
The tool from NYSE Technologies and MDX Technology Ltd. will allow traders to funnel data instantly into spreadsheets that can be used to value holdings as prices change, model what will happen to the prices if conditions change, analyze strategies and make markets. The results can also be incorporated into algorithms that execute orders, according to a Microsoft technology strategist.
The tool, called MDXT ConnectExcel, takes market data that has been converted into a standardized format and “streams” it into spreadsheets built in Microsoft’s Excel calculation engine.
This allows traders to constantly “mark to market” any securities they have running in their spreadsheets, according to MDX chief executive Paul Watmough. The real-time data also can be combined with historical data for running Monte Carlo simulations of different scenarios and conditions that can affect trading.
The tool was developed as a result of customer requests, said Brian Doherty, managing director of market data technology for NYSE Technologies.
With this plug-in, traders, in effect, can see the same prices on their desktop terminals that are running through the servers that are their primary means of executing orders and strategies.
Trading firms will pay on the order of $100 a user a month, for the tool, according to NYSE Technologies and MDX. For some firms, this could make a Windows desktop computer a low-cost alternative to Bloomberg terminals, which cost roughly $2,000 a month per user.
Bloomberg terminals have a great inventory of analytical tools, not just data. But Microsoft financial services technology strategist Damien Islam-Frenoy said that users of the Excel-ready data can use a wide variety of analytical applications designed for use on Windows machines by software developers.
He did not quantify the size of that universe, in an interview with Securities Technology Monitor.
NYSE Technologies supplies a SuperFeed of market data that includes ongoing details on transactions occurring in major US, European and Asian markets. The output of SuperFeed is supplied in a single normalized format.
These include NYSE Euronext markets (NYSE, NYSE Arca, NYSE Amex, NYSE Euronext, NYSE Liffe), Nasdaq, Direct Edge, CME, London Stock Exchange, Deutsche Boerse, and data from the Options Price Reporting Authority, among others.
Reuters, Bloomberg and TIBCO data also are supported.
MDX’ Connect technology uses ”intelligent caching” to fee large spreadsheets. Traders and analysts can recalculate positions using multiple simultaneous threads of calculations.
One user, CMC Markets, said the tool would help it manage risks and prices for “tens of thousands of instruments” ranging from stocks to commodities to foreign exchange. Providing “traders and financial engineers with the ability to incubate new risk models is absolutely critical,’’ said Harish Rao, CMC’s group head of pricing and risk.
-- This article first appeared on Securities Technology Monitor.