The JSE has partnered with smart data and analytics company big xyt to launch big xyt ecosystems as a new joint venture (JV) company.

The JV will deliver a Trade Explorer data analytics solution to global stock exchanges and their ecosystems, particularly trading participants of the exchange’s cash equity and exchange-traded fund (ETF) markets, as well as exchange members and their clients and issuers.

The new platform enables trading venues to distribute data analytics solutions to customers in their respective ecosystems. The service is delivered directly to end-users through hosted Web services that enable rapid time to market and lower costs.

It also provides sophisticated analytics tools that enable users to understand market liquidity, quality and flows, market share, business concentration, execution performance and tools for analysing trading patterns.

The platform will ultimately provide pre-trade decision support.

The JV company, big xyt ecosystems, is an equal investment by the partners, both of which bring a substantial capability to the trading venues marketplace.

The new company will benefit from big xyt’s technology stack and experience of providing these solutions to the market, while the JSE brings the innovative culture that resulted in the Trade Explorer concept, proven use cases from its own marketplace, and an extensive peer network within the global exchange community.

big xyt has created a global ecosystem for tick data analytics covering more than 120 trading venues across equities, ETFs and listed derivatives such as futures and options, with its clients including investment banks, asset managers, exchanges, regulatory bodies and ETF issuers.

The company’s unique private cloud-based technology normalises trade conditions of venues allowing accurate and transparent aggregations of trading volumes, comprehensive analysis, and delivery of results in flexible and customisable formats.

JSE CEO Leila Fourie comments that stock exchanges globally understand the need for a quality and user-friendly market data offering. This Trade Explorer platform will further entrench the JSE’s position as a centre of innovation for financial markets in Africa and beyond.

big xyt CEO Robin Mess states that trading venues can rapidly realise additional revenue streams by leveraging their unique datasets without making heavy investments in new technology.

For market participants, this offers greater accessibility to data analytics for firms of all sizes – as there is no longer the need to develop such capabilities in-house, he adds.