FOW TRADEdata Xymbology publishes white paper on symbol management
Discusses the impact of symbology on competitive brokerage services
FOW TRADEdata, an independent provider of quality reference data for exchange-traded futures and options, has today announced the publication of a new Xymbology white paper. The paper, entitled How good symbol management and interoperability promote competition in buy and sell side services, looks at how buy side choice of trading solutions in the derivatives industry affects competition in brokerage and other trading related services.
How good symbol management and interoperability promote competition in buy and sell side services directs readers to the background issues with symbology and the constraints that limit choice in both users and providers of brokerage services in the future and options market. The paper supports FOW TRADEdata’s contention that, from direct experience, outsourcing symbol data management and the provision of consistent mapping of instrument identifiers allows firms to choose products and offer services based on merit and not on legacy restrictions.
Mark Woolfenden, managing director of FOW TRADEdata, says: “The recognition of good symbol management as a pre-requisite for reducing systemic risk and lowering costs in trade processing is not new, but the impact of a commercially available cross-reference feed for multiple vendors is changing competition dynamics in brokerage services. Not only can a service firm benefit from increasing their access to clients, but alternative market data providers can build new business more easily from switch sales or as a dual price alternative.”
Woolfenden adds: “The Xymbology database can be integrated with securities master files and placed in central repositories for firm-wide use and this is how many of our existing clients consume this feed. Throughout the development of the service over many years, we are very pleased to have played an important rôle in helping our clients build their business. We believe that Xymbology is very strategic proposition, and one that has increased choice for buy side firms when seeking brokerage services.”