Back to top

Analyst Blog

NYSE Technologies, a division of NYSE Euronext, Inc. further consolidated its relationship with California based website builder Xignite Inc., and agreed to launch an innovative service for using the Internet to access real-time, historical, and reference data across its markets. Xignite Inc. excels in providing financial web services and cloud solutions to over 1000 clients across 50 countries.

The initiative aims further development of the services of NYSE Technologies Market Data Web Services, which is powered by XigniteOnDemand. The service was initiated by NYSE in 2011 to extend the benefits of NYSE Technologies Capital Markets Community to remote locations and also to non-latency sensitive clients.

The execution of the new service has been planned in two phases. To begin with, users will be provided with the benefit of retail reference pricing on a real-time basis across NYSE, NYSE MKT, and NYSE Arca markets. NYSE Bonds data, NYSE Liffe Level 1 and Level 2 data, and NYSE and NYSE MKT Order Imbalances will be made available in the final phase, programmed to be delivered in the penultimate quarter this year.

Users of NYSE Euronext market data across the world, especially in remote areas, will be able to access and modify the available data according to their requirements with the availability of Internet connection. The company also wishes to connect its consumers directly to the content in various ways. NYSE’s partnership also complements its enterprise cloud strategy by giving the firms the liberty to focus on its primary business.

Although the company remains up-to-date with the latest technological upgrades in the trading environment, it should focus more on increasing its trading volumes. It continues to suffer from weak trading volumes across equities, bonds, ETFs and structured investment products.

The company should also be wary of its competitors with a similar proactive stance in the industry on the acquisition front. CMEGroup (CME - Analyst Report), a close competitor of NYSE recently launched CME Direct that facilitates brokers to handle customer accounts on a single platform, simultaneously doing away with the hassles associated with switching between the exchange's Globex and Clearport systems.

NYSE currently retains a Zacks #5 Rank, which translates into a short-term Strong Sell rating.

Please login to Zacks.com or register to post a comment.