Cboe prioritizes global data and analytics
Ed Tilly, chairman, president and CEO of Cboe Global Markets, said of the exchange group’s first quarter results that one of the top priorities is the global expansion of its data and analytics offering.
Catherine Clay, Executive Vice President, is responsible for achieving this goal as she has been appointed to head a new division, Data and Access Solutions.
In March of this year, Cboe announced the combination of information solutions with market data and access services. Clay has been promoted to Senior Vice President, Information Solutions, and joins Cboe’s leadership team in her new role.
She told Markets Media: “Thinking about how to use the strengths of each division has triggered a lot of creative thinking over the few weeks that we are a united and integrated team.”
Clay has been with Cboe since 2015 when the group acquired the options market data services and trading analysis platforms from LiveVol, where she was Managing Director. She began her career as a clerk in Interactive Brokers’ market management unit, Timber Hill, and became Director of Operations and Floor Operations. In 2006, Clay became co-founder of options market maker Thales.
Tilly added that as the business environment becomes more global, customers want more efficient market infrastructure services and Cboe’s goal is to align its business to meet these needs. clients for global data and analytics.
Clay said, “It’s an expensive proposition for companies to have many different points of contact and supplier relationships and they want us to solve this problem for them globally. We can alleviate this problem for our customers by judiciously combining these two activities. “
She added that Cboe must meet clients where they live and provide a single point of entry for all data, analysis and clues.
“It quickly became clear, as the Chi-X Asia-Pacific acquisition emerged, that we should not introduce fragmentation points for our clients who already have a fragmented experience in global markets,” added Clay. “Another catalyst for this combination is the launch of our European derivatives market this year and we are focused on providing analytical data offerings and services for this space.”
Cboe announced the acquisition of Chi-X Asia Pacific, an alternative equity trading system, and the launch of a new European derivatives marketplace on September 6, 2021.
Tilly said, “As part of Chi-X Asia-Pacific, Cathy will lead our efforts to create the first truly global stock market data platform that is expected to offer data from most of the world’s major markets.”
Data and access solutions
Clay added that the new division was already trying to fix some of the plumbing for customers.
“For example, we try to harmonize legal agreements with customers globally and make sure that our rights systems are the same for all products,” she added. “Now what’s happening is the idea around our global market data strategy and what we’re going to bring to market first that makes sense to customers.”
Index data, for example, could start to migrate more to real-time market data. She explained that the real-time market data business is ahead of the curve in terms of the cloud distribution strategy, which now offers good wind for the rest of the analytics business.
She has experience in bringing together technology companies, as last year Cboe made three acquisitions that were integrated into Information Solutions – Hanweck, a real-time derivative risk analysis company based in New York. ; FT Options, a provider of research and analysis capabilities on options, futures and light exotic species; and Trade Alert, a provider of real-time alerting and order flow analysis services.
“The three acquisitions we made last year really met customer needs as we filled in the gaps from a business lifecycle perspective,” said Clay. “We serve our clients well in the pre-trade portion of the workflow, adding real-time compute-intensive analysis for margin and portfolio risks and providing post-trade services through our valuation services,” pricing and benchmark data. “
She explained that the growth would come from what Cboe does well in the United States, as a dominant provider of indices, data-driven products and analytics, and its openness to a wider global audience.
“Customers will transact in our new markets in Europe, Canada or potentially Australia and Japan, and will need the tools that we have been developing for decades in the United States,” she added. “We have a good grasp of how to resolve the workflow for clients and now it’s just a matter of bringing that to a more global audience and thinking about integrating different asset classes.”
In December last year, Cboe signed an exclusive license agreement with CoinRoutes to broadcast the trading software company’s RealPrice data feed, which provides a Better Consolidated Offer (BBO) of all major crypto exchanges. currency incorporating the actual cost of exchanging specific quantities of a digital asset. in real time.
Clay said that CoinRoutes’ RealPrice data feed was Cboe’s initial entry into data for crypto and digital assets, which are nascent asset classes.
“We would like to expand if we can identify meaningful and somewhat unique data points in the digital asset realm,” she added.
Clay added that there was also a broad focus on environmental, social and governance issues within Cboe.
John Deters, chief strategy officer at Cboe, said during the earnings call that Cboe will pursue its ESG products – whether data or tradable contracts – with its existing partner such as FTSE Russell, MSCI and S&P, which already provide ESG data and indices.
“We haven’t yet identified exactly how we’re going to enter ESG data, but that thematic magnet across indices and data is there,” Clay added.
She said the new division’s priority this year was to take a customer-centric view of their issues and make sure Cboe understands how they want global data and analytics products and services to be delivered. .
“We need to deliver solutions that improve or optimize their workflows to enable them to achieve their strategic goals,” added Clay.
By the end of this year, Clay would like the company to be fundamentally more integrated.
“Once the plumbing is complete, we can emerge in the next year with a thoughtful roadmap for the most meaningful services we want to deliver,” she said. “Our new derivatives business in the EU is at the forefront, so we’ll make sure we’re there for those participants and then think about how we integrate our data offering for a global audience.”
In presenting the results, Cboe said he believes the new division will create an opportunity to further develop the exclusive non-transactional revenue, which stands at around $ 350 million in 2020.
The company has raised its 2021 annual organic growth target from recurring non-transactional revenue from 6% to 7% to between 10% and 11%, after exceeding targets in the first quarter of this year.