Data is Still King: Exegy’s Options Industry Conference Takeaways
Staying ahead of emerging trends is key to success in the ever-evolving world of finance. Recently, Johnathan Hampton, Exegy’s Director of New Accounts and Partnerships, had the opportunity to attend the Options Industry Conference in Asheville, North Carolina. In this blog, Hampton shares his reflections on the event and future of the industry.
Addressing Emerging Trends
Conversations at the Options Industry Conference touched on several emerging trends, notably the rise of professional/retail (Protail) traders and the increasing options volumes, fueled by products like 0 Days to Expiration (0DTE). Interestingly, during the event, some panels took a more skeptical approach to 0DTE options.
Exegy is uniquely positioned to support companies that create trading platforms for retail by providing high-quality data in user-friendly formats at competitive prices. Moreover, the company is actively assisting firms in the Protail space with data and consulting services to enhance customer satisfaction and competitiveness.
Additionally, another important trend to note is that fast, high-quality data is becoming more and more accessible, meaning that the financial services landscape is on the brink of transformation. As a result, brokers and market makers will need to adapt to increased competition from Protail traders, who are becoming more assertive in the marketplace and are looking to cement their position within the industry.
The challenges of Protail vs market makers are quite different, however, Exegy provides an offering which can accommodate both. Working directly with firms which address the retail markets requires Exegy to process a lot of data in an efficient footprint which Exegy’s Ticker Plant (XTP) and normalized data feed, Axiom, are designed for. Market makers, on the other hand, need to trade a more reduced set of symbols at very aggressive speeds, which our FPGA tick-to-trade offering is specifically built to tailor to those low-latency use cases. For less latency-sensitive trades or for trading on less latency-sensitive venues, our software offering provides flexibility, scalability and fast time-to-market.
The Future of the Financial Industry
Despite present challenges, the financial industry remains robust, with prospects for continued growth. Accessible data and readily available educational resources are democratizing the sector, fostering innovation and expansion. While there is still growth on the horizon, the distribution of revenue is continuing to shift, and liquidity providers are continuing to capture more and more of it.
Looking into the future, there is a consensus that data volumes will continue to soar. This shines a light on whether certain providers can meet the demand for Complex Order Book (COB) data. Our ticker plant appliance stands out as an efficient solution among our competitors, offering COB data while reducing the amount of valuable rack space needed compared to full software solutions. Furthermore, the retail sector is continuing to grow and have a greater influence on market dynamics, shaping future strategies that exchanges are adopting to cater to this demographic.
To conclude, the Options Industry Conference provided valuable insights into the ever-changing financial environment and a clear look into the future of the industry. Exegy’s commitment to innovation and client support ensures that it remains at the forefront of technology, while addressing emerging trends and challenges in the sector. As the industry continues to evolve, adaptability and cutting-edge solutions from trusted technology partners will be essential for client success.
