Every exchange is looking at new ways to store, package and provide data to end users. CME’s Julie Armstrong Menacho said the exchange is creating platforms for the next generation of data.
Speaking at Barchart’s FinTech Exchange Chicago conference in April, Armstrong Menacho outlined CME’s Technology Partner Services Directory, which provides a host of certified vendors from ISV’s, market data providers and risk management platforms. The new platform has more than 80 partners and plans to list around 200 by year end.
The exchange has also been migrating its historical data into the cloud for about two years and now offers over 450 terabytes of data that stretches back to the 1970s, also with a self-service online portal for easier access. Customers can now buy the data as a one-time purchase or on a subscription basis with daily updates. CME offers five data sets including market depth, top of book, end of day prices, time and sales and block trades. The exchange partnered with Amazon Web Services for its storage and TickSmith as the online portal service.
Armstrong Menacho added CME is moving into the alternative data space as well. This data provides the next level of granular information for markets and industry.
“What’s really cool about where we are right now is that … we have the tools in the cloud with machine learning, artificial intelligence capabilities that is allowing the processing, and the storage and the management of all that big data to actually turn into new products and services,” she said. “It’s giving new ways for new data sets to come in and new ways to slice up that data.”
Armstrong Menacho calls it a “data revolution.” The alternative data space is now offering information based on satellite images, but also web and app scraping, social media sentiment, credit card transactions, geolocation, weather, crowdsourcing estimates and B2B data sets.
“We already are working with a number of alternative data companies and we want to host that data in CME Datamine,” she said, adding that she’s visited 30-40 companies over the past six months for potential partners. “The amount of data they are pulling together, how they are able to synthesize that and turn that into a realized product for customers in the marketplace is just really astounding.”
CME also is continuing its work in the venture capital space, with investments now in 14 companies. CME Ventures, run by Rumi Morales, sees not only profit opportunities but also synergies with the exchange.
“They don’t just focus on technology right now,” Armstrong Menacho said. “They focus on technology that might have some kernels that might be big… two to five years out.”