Total spending on financial market data is expected to break a new record of $37 billion in 2022, according to Trade Algo.
“Bloomberg ranks #1 in global revenue across all user groups we’ve tracked,” says Peter Jon, founder of TradeAlgo. “We seek to serve the 100+ million users who cannot afford to pay tens of thousands per year for high quality, low latency market data and algorithms.”
“We hear every day from underserved people saying they wish they had access to the same kind of data as hedge funds on Wall Street,” Stone added.
Post-pandemic growth has been consistent across all regions of the world tracked by TradeAlgo, with market data spending in the Americas growing by around 8.2% in 2021, surpassing the 6.7% rate in Europe and 6.6% in Asia.
United States leads the market data spend with 55.1% of the global total. Europe and Asia represented respectively 26.2% and 18.7% of the total.
The investment landscape has changed dramatically as the power and influence of retail investors has grown exponentially and has shown no signs of slowing down. “Public companies can no longer operate under the old conventional wisdom that retail investors have no impact,” noted an S&P Global report.
Public participation in the market remains higher than it was before the pandemic, which has contributed to TradeAlgo’s forecast of $37 billion in global market data spending by 2022.
TradeAlgo combines economic engineering innovations with access to institutional-grade data APIs to help seasoned investors and novices alike make better, more informed decisions.
“Access to data is not only valuable to investors, it is essential. Today’s high-frequency trading environment, enhanced by artificial intelligence and virtual reality, continues to infiltrate our TradeAlgo seeks to open up these emerging technologies so that everyone can accelerate transparency and fair markets for all,” Mr. Stone said.
Although industry demand is expected to reach new heights this year and exceed $37 billionmany traders surveyed expect traditional market data providers to face greater threats from incumbents and blockchains.
In a recent TradeAlgo survey, 50% of respondents said the biggest challenge facing market data providers over the next two years will be adapting to the growing popularity of data platforms, cloud marketplaces and third-party application suites.
With scalable cloud-based solutions, underserved customers can consume and purchase data more easily while maintaining fewer direct vendor relationships, which respondents said will force traditional vendors like Bloomberg, Refinitiv and d others to adapt.
TradeAlgo’s mission is to provide the over 100 million underserved clients in the capital markets with high-quality, low-latency market data. TradeAlgo has honed its technology through the best cloud-based applications, APIs and algorithms by sponsoring the Harvard Computer Society alongside Citadel, Microsoft and Huawei. TradeAlgo seeks to help traders, fintech startups and financial institutions get the most out of their data with its algorithms and market data application suite solutions. Today, thousands of clients have access to over 500 market APIs and leverage a suite of specialized applications to accelerate efficient and profitable trading solutions. Visit TradeAlgo.com for more information.
SOURCE commercial algorithm