OUR PRICE ADJUSTMENT DERIVATION ENGINE
Our proprietary price adjustment derivation engine is applicable to any industry that licences stock exchange trading data or 3rd party financial trading data from official venues and the OTC markets. Data is derived by integrating our engine with your raw market data feeds (level 1 and 2). This protects you from retrospective market data audits for non-compliance of licensing fees and policies.
Exchanges have changed their data audit approach. Previously a flat-fee Derived Data Licence Fee was sufficient and pre-audits were not undertaken. This has now changed; exchanges such as the London Stock Exchange and CME are undertaking pre-audits to ensure, prior to licensing, a firm’s derived data is not able to be reverse engineered and the onward distribution of data is licensed. The risk grows each year as more and more exchanges change their policies. Furthermore, LPs provide engineered feeds that are biased towards their markets.
a neutral derived data feed allowing customers to add their own spreads and margins.
OUR ENGINE CONSISTS OF 3 CORE COMPONENTS:
TYPICAL FLOW OF MARKET DATA
The derivations are aggregated with the prices within FinX before being sent into the aggregation engine as a maker:
ALTERNATIVE FLOW OF MARKET DATA
The derivations are matched with the prices within the aggregation engine:
RANDOMNESS BUILT IN
A price adjustment derivation engine works by making random adjustments to the value of each market in a trading data feed, creating a ‘derived data feed’.
Our engine injects this true randomness by using entropy pool methodology. An entropy pool is a source of random bits used to derive random numbers via a range of algorithms. The key thing here is to ensure there is enough entropy to allow random numbers to be generated without repetition. FinX uses a system that continually recharges and adds entropy to the pool which therefore allows non repeating random numbers to be generated.
This offers a robust solution that cannot be reverse engineered; we have tested our engine’s derived feed against the reverse engineering policies of major exchanges.
Our derivation engine is comes with system monitoring tools, such as our “Healthcheck”, to ensure that everything is running as expected and any issues can be diagnosed quickly. Full technical documentation and training is supplied upon deployment to ensure that your development team is comfortable with how our engine is built and managed.