News came this month that data analytics solution provider big xyt has partnered with ETFbook, an ETF information and analytics platform, to provide daily fund data for their Liquidity Cockpit for ETFs solution.
Robin Mess, CEO and Co-founder of big xyt, explains that the firm is a fintech firm working to provide solutions and increase transparency across the financial services industry.
“We are focused on the trading side where we analyse the most complex data sets, mainly tick data,” Mess says. “It helps us to produce solutions that help clients understand the quality of, and liquidity and performance of trading.”
Their client base consists of exchanges who want to understand the competitive landscape, especially in Europe, where exchanges want to understand their market share for ETFs and the quality of provided liquidity, for example, as seen in the spreads.
The firm also works with issuers who are keen to understand how their products are traded and how the notional traded works on a variety of venues. “It’s the same metrics but from a different standpoint,” Mess says, “as they are competing to launch products that are of most interest to investors.”
The third client group is institutional investors who are keen to access the liquidity within the market with the smallest market impact.
ETFbook will provide data on European ETFs, however big xyt is a global operation. “We get our data from different sources such as exchanges, market data vendors and clients, and that means we have more than 30,000 listings to deal with, so we needed a partner to provide transparency on the products, while we add transparency on the liquidity on each product and listing.”
Mess explains that the firm also helps clients to understand the expected market impact if an institutional investor is trading a large basket.
“A key aspect for our solutions is our independence,” Mess says. “We are 100 per cent owned by our employees so there is no conflict of interest, and we are able to serve all the different segments of the industry.”
Mess believes that this offering will increase the transparency in the ETF industry. “At the moment global investors are very interested in ETF products and it’s very difficult for them to understand where the liquidity is. Now it is possible to quickly answer this essential question.”