Welcome to the launch of Signum Signals!
Exegy is proud to announce the launch of Signum, a product that applies advanced machine learning techniques to add predictive insights to low-latency market data. Our goal is to provide daily updates to metrics that quantify the value and accuracy of our signals, as well as insightful commentary on the market dynamics that they predict. We hope that you make a visit to this site a part of your daily routine and we invite you to send us your thoughts and suggestions for improvements.
Exegy has invested in Signum because we believe it represents the future of elite trading systems. Today, Exegy is the premier provider of Direct Market Data feed solutions to Tier 1 firms – both buy-side and sell-side. We have a proven track record of innovation, amassing an Intellectual Property portfolio of over 117 patents and delivering in 2008 the first FPGA-based ticker plant to the capital markets. We also have a deep commitment to a premium user experience whereby we insulate our clients from the complexity of cutting-edge technology and deliver all of its value as a fully managed service. As we observe the rapid advance of Artificial Intelligence (AI) and Machine Learning (ML) technology, we recognize that the future of low-latency trading infrastructure is delivering predictive signals in the same latency profile as normalizing, aggregating, and filtering market data. This vision has shaped our Signum offering, and we are striving to deliver it with our trademark commitment to innovation, performance, and service.
We have launched Signum for the United States equity markets, with expansion to other asset classes and geographies in the near future. Our current signals deliver predictions of price movements and forecasts of liquidity with every change in the National Best Bid and Offer (NBBO) across all 14 protected equity markets in the United States. Exegy Ticker Plant appliances process over 3 billion pieces of market data a day for each of our clients consuming direct and SIP feeds for US equities. Over 500 million of these pieces of market data alter the NBBO quote for a listed equity. Historically, the Exegy Ticker Plant consumes the data from all the feeds, normalizes the data to a common data model, then aggregates, filters and distributes the data to client trading servers according to each application’s directions via the Exegy API. Exegy completes the processing of each piece of market data in 5 microseconds using a single appliance that only consumes two rack units (2U) of space in your data center.
Signum now adds small pieces of data, signals, to the 500 million pieces of market data that change the NBBO on an average day:
Quote Vector is a probability that the next NBB and NBO price changes will be up or down.
Quote Fuse is a probability that the next NBB and NBO price changes will occur in 50 milliseconds or less.
Liquidity Lamp is an indication that hidden liquidity is resting on the book for a specific instrument on a specific exchange.
Articles and whitepapers on this website discuss the methodology and utility of each of these signals. Interestingly, Quote Vector and Liquidity Lamp are also reliable indicators of increased trading activity while the signal is activated. These signaled pools of liquidity are of a significant size when compared to the daily trading volume in each instrument. The existence of this secondary signal suggests further strategies for those in the market-making and agency execution businesses.
We view Signum as providing foundational signals that may be uniquely combined with one another and other internal signals to produce more profitable trading strategies. We expect Signum to be a co to the quantitative research efforts of our clients, allowing them to develop new trading strategies more rapidly and cost-effectively. In addition to offloading the development of these foundational signals, our Signum service includes continuous maintenance and accuracy reporting.
We have built our business with the Tier 1 sell-side and buy-side firms by offering a vendor managed solution to some of the most important trading challenges of the last ten years. The conversion of markets to electronic execution, colocation, direct data feeds, wireless interconnects and new regulatory requirements have played an important role in the growth of Exegy. We believe the use of real-time predictive analytics in the market making and agency businesses will drive performance and cost initiatives for years to come.
Signum is our flagship product supporting our clients along this rapidly changing path. We have been in development for over two years and we are deploying systems to early adopters now.
Thanks for your interest.
Jim O’Donnell, Chairman and Chief Executive Officer