Evolution of Market Data: Exchanges Are Shaping Global Trade

In the fast-paced world of global financial markets, data has become the lifeblood of trading strategies, risk management, and regulatory compliance. As we move further into 2025, exchanges are at the forefront of innovation, transforming how market data is consumed, analyzed, and utilized.

Key Developments in Market Data for 2025

Data as a Strategic Asset

Exchanges like Cboe Global Markets are packaging data to make it more efficient and actionable for market participants. Services like Trade Alert aggregate data from 18 markets, 5,800 instruments, and 6 million trades, providing contextual alerts for significant market activity.

Cloud Hosting and Advanced Analytics

The shift to cloud hosting has enabled exchanges to offer scalable, secure, and cost-effective data solutions. Cloud platforms allow for large-scale analytics, trend identification, and optimization of pricing models, empowering firms to make data-driven decisions.

Transaction Cost Analysis (TCA) Evolution

TCA is evolving into a pre-trade function, incorporating more asset classes and embedding a wider range of costs, including market data and capital costs. This shift is driven by regulatory changes and the need for more sophisticated trading strategies.

Multi-Asset Expansion

Exchanges are expanding their offerings by acquiring foreign exchange (FX) platforms and OTC venues. This diversification allows market participants to trade across a broader range of instruments within a single exchange group.

Ultra-Low-Latency Data Feeds

To meet the demands of high-frequency trading and algorithmic strategies, exchanges are investing heavily in infrastructure to deliver ultra-low-latency data feeds. Speed and accuracy are critical for split-second trading decisions.

Expert Insights

Elena Patimova, Director of Derivatives Sales at Cboe Global Markets, emphasizes the value of data:
"Data is the new oil, it is very valuable. At Cboe, we are focusing on how we can package the data so that market participants can use it in a more efficient way."

Magnus Almqvist, Acting CEO at Exberry, highlights the creativity in data packaging:
"There is a lot of creativity among exchanges in the market today in terms of how they package and analyze data and provide data analytics tools to their customers."

Conclusion

The global trade landscape in 2025 is being reshaped by the innovative use of market data. Exchanges are not only meeting the growing demand for data but also driving its evolution through advanced analytics, cloud solutions, and multi-asset expansion.

Stay informed about the latest developments in tech and trade as we navigate the dynamic world of global markets!