Covering all bases: The importance of global data coverage for multi-asset class trading 

The need for high-quality, extensive market data coverage is increasing, given markets’ complexity and interconnectedness. Market data coverage quality can be examined across the following dimensions: breadth, depth, granularity, accessibility. Providing unparalleled tick history and direct feeds content coverage, LSEG are prepared to support customers’ multi-asset class trading efforts.

• Given the complexity and interconnectedness of markets, high-quality, extensive market data coverage is needed to support multi-asset class trading.
• The quality of market data coverage can be considered across four dimensions: breadth, depth, granularity, accessibility.
• At LSEG, we’re prepared to meet customers’ needs by providing unparalleled tick history and direct feeds content coverage.

Given the interconnectedness of markets fuelled by electronic trading and global macroeconomic events, the need for extensive market data coverage is ever increasing. According to Coalition Greenwich, electronic trading now accounts for 42% of U.S. and 44% of European equity market commissions. Managers expect these figures to rise to 48% and 50%, respectively, in the next three years.

In market data, content is king. Extending that analogy, coverage is the size of the kingdom. At LSEG, we offer unparalleled content coverage across asset classes, geographies and content sets. When it comes to tick history and direct feeds, coverage is an enabler to entering and succeeding in new markets.

When it comes to coverage, we consider the quality of coverage across four dimensions.

• Breadth – Coverage across not only geographies but also asset classes is required not just for systematic trading but for anyone trading in multiple markets. Market disruptions have demonstrated how equities, options and futures are interrelated and important for price discovery. Breadth is not limited to across asset classes, venues may offer multiple feeds including top-of-book, market by price and order by order pricing. Depending on a firm’s use case some or all of these feeds may be required.
• Depth – Extensive history and depth of book data allows firms to understand black swan events and see trends as market structure changes not evident in shorter timeframes. In order to support analysis over time, our products stay current with exchange driven changes and allow continuity of analysis across these changes.
• Granularity – Nanosecond precision, with every tick included. Without granularity, it is impossible to understand the markets in a meaningful way. Market reconstruction and automated trading strategies require this level of detail – not just for strategy development but also for transaction cost analysis (TCA).
• Accessibility – In the cloud and on-demand, access is not just about ease of downloading the date you need it’s also about speed. Switching the focus from data management to data analysis and decision-making.

Starting with a base of over 350 feeds for Tick History – PCAP and 583 venues for Tick History, firms can support multi-asset class trading with our data in many markets. Moving forward, our coverage expansion strategy is focused on emerging markets and new venues. In the first quarter of this year, we launched 38 new feeds across 11 venues. For the remainder of 2024, we expect to add over 60 more feeds including venues in China, the Middle East, and Asia (e.g. Shenzhen, Vietnam, Tadawul, Thailand, etc.). 

Our expansion strategy also extends to our direct feed offering, Real-Time – Direct and Real-Time – Ultra Direct offerings as well. Real-Time – Direct will have over 40 feeds by the end of the second quarter, including all U.S. equities direct feeds. Further expansion into global futures and FX is expected for the second half of this year. Real-Time – Ultra Direct coverage will expand to key markets in APAC (Shenzhen, Shanghai, Thailand and Singapore), EMEA (Johannesburg, Madrid), and FX.

LSEG Tick History’s amount of history is unparalleled in the industry. Certain market events like flash crashes happen once in a blue moon and having sufficient history is a prerequisite to analysing the impact of singular trading events on future strategies. Our PCAP dataset focuses on depth of book feeds so data scientists and quants can accurately reconstruct markets. Whether you are interested in Level 1, 2 or 3 data, LSEG Tick History lets you magnify the markets.

With LSEG Tick History, clients are covered. We are meeting our clients where they are and where they are headed – cross-asset class, global electronic trading, leveraging the cloud.