We have entered the sign-up phase of our startup’s launch process, so this is an opportune weblog in which to explain what we do, why we do it, and how we see this start-up.
Most contemporary debate in and around financial markets focuses on the problem of too-big-to-fail. This overlooks the fact that too often it is nigh impossible for new entrants to effectively compete with established participants without large sums of capital. Financial and human capital. No one should be considered too small to compete and succeed - too-small-to-succeed is the real problem in today’s financial markets. Our objective is to help level the playing field by providing access to complete financial data to all market participants.
The Value Proposition
The Taqtiqa value proposition is simple: reduce your financial investment in computer hardware, spend less human capital developing your data server infrastructure and we will enable you to get to market more quickly, with lower ongoing operating costs. With Taqtiqa you simply buy your data (contact us if you have an existing data license with an exchange), use our APIs, and you can be analyzing complete TAQ datasets within ten minutes. While spending less.
Typically, you’d need to dedicate at least one or more full-time developers to building out your backend data server infrastructure over a few months, and have a part-time database administrator for on-going maintenance. That doesn’t include longer term concerns such as ensuring your computing infrastructure scales as your needs grow.
Pricing That Makes Sense
We want researchers, analysts and traders to be able to focus on what they do best: Innovate, develop, test pricing theories and trading strategies.
That’s why we have the most generous free trial in the market. We don’t want you to have to worry about pricing at the outset. Successful ideas will outgrow our free trial and we will be there to meet your needs with affordable transparent pricing.
Until then, you stay focused on what you do best.
I founded Taqtiqa after experiencing how difficult it can be to get access to “pure”, or unfiltered, market data. In the course of my PhD, and later when teaching and supervising students I noticed how onerous it was for faculty and students to get direct access to all trades and quotes, without someone having filtered out what they consider irrelevant data. Added to that difficulty was the need for large amounts of computing infrastructure to house, process and deliver the data.
I’ll write another post on the fallacy of “clean” TAQ data. For now I’ll simply emphasise that we give you all the data the exchanges provide to us: no deleting, no massaging, no filtering.
Why We Created TAQTIQA
In the course of my Academic career, grounded in what I learned under my supervisor Prof. Ross Maller, I had the good fortune to work on analysing the microstructure of financial markets along side several colleagues (Prof. Philip Brown, Prof. Bruce Lehmann, Prof. Thomas McInish). Market microstructure studies make clear that having access to all information implicit in TAQ datasets can make an enormous difference when analyzing the behavior of market prices and volumes. Consequently, having tick-by-tick data directly affects how you form and reformulate your ideas.
Practitioners label these ideas “trading strategies”. Academics label them “price theories”. No matter which term you use, having convenient, affordable access to raw TAQ data makes a difference in how you evaluate your ideas.
Developing your pricing or trading ideas is difficult enough. Developing and managing the infrastructure required to access the Terrabytes of data present in financial market trading records makes a difficult task harder. Taqtiqa was created to eliminate obstacles. Obstacles that mean the difference between fully testing your ideas and crossing your fingers. Our technology gives you convenient and cost effective access to historical records of each and every trade and quote in every stock on the market - just as the exchanges provided them.
How We See The State-Of-Play
Financial market research, analysis and application development have been hampered by the absence of affordable and easy access to comprehensive records of all trade and quote records. An effective barrier to entry to any market is the requirement to develop expensive infrastructure just to assess whether a pricing theory, business or investment idea is valid. This is particularly true in financial markets.
Each day new researchers, analysts and individual investors try to participate in financial markets. These markets are filled with existing highly skilled professionals at every level: Professors, analyst teams, mega hedge fund managers. New researchers, analysts and investors, are up against people and organizations with the required information infrastructure and computing already in place.
Taqtiqa’s primary aim is to reduce theses advantages of incumbency and provide new researchers, analysts and traders a opportunity to compete on an equal footing. We turn what was a disadvantage into an advantage. New participants can now compete with lower overheads and smaller upfront costs than established market participants.
We believe your ideas and what you do with those ideas, not the size of your budget, should determine whether you succeed.
What We Do
Market data infostructure
Infrastructureless research and analysis are done entirely using third-party infrastructure, such as our TIQA service and our TIQA plants. We call this third-party provisioning infostructure: infrastructure for the research and analysis of financial market data.
This approach utilizes backend services. Researchers, analysts and traders still own the data, but they don’t have to incur the capital costs of building their own dedicated data infrastructure.
Shortly, you will be able to use our API to build a wide-variety of trading related applications, ranging from verifying trade execution quality, to reproducing high-frequency empirical studies, to back testing trading algorithms and verifying trade executions. All without spending time and money on data server infrastructure development, and with the confidence that your application data server infrastructure is secure, reliable, and able to accommodate growth.
We will be introducing functionality that builds upon this foundation in the future, expanding the possibilities even further.
Trading technology has reduced trading costs, increased the number of markets participants and their trading frequency. This has led to an increase in the size of financial market data sets. The size of these datasets has reached the point where acquiring and processing the data imposes infrastructure requirements that are extremely costly. Large datasets have meant data-infrastructure is now a barrier to the entry of new market traders, analysts and researchers. Currently it is too expensive to acquire and process high-frequency/tick-by-tick market data. We aim to change that.
How we see the future
Financial market research, analysis and application development will be radically simplified with the emergence of backend service providers offering cloud-based APIs for everything from data access to complex event processing.
This has been called innovation-velocity: reduce time-to-market, upfront costs, fixed and marginal costs while increasing infrastructure flexibility and quality.
Researchers, analysts, traders and application developers can focus on their ideas, rather than setting up backend infrastructure and services.
Find Out More
To discover more about our datasets, our API and our architecture please check out our API documentation, dataset documentation or subscribe to our blog RSS feed for further details about our features.