Frequently Asked Questions
Who is Tradition and what do we do?
Listed on the Swiss Stock Exchange, Compagnie Financière Tradition (CFT) is one of the world’s top interdealer broking firms. In the last decade, the company has expanded significantly, primarily through organic growth.
Acting as a marketplace and an intermediary, CFT facilitates transactions between financial institutions and other professional traders in the capital markets. These transactions vary in scale and liquidity, from the simplest to the most sophisticated, the most liquid to the most illiquid.
The key to our success is our ability to understand the evolving needs of our extensive and long-established network of clients, together with our strong capabilities in derivative markets.
The marketplaces in which we operate are as advanced as they can be given the structure and liquidity of the underlying market. In addition to running a world class voice brokerage/intermediation business, we also operate highly advanced trading platforms in multiple asset classes globally.
Our platforms range from fully electronic, in markets such as FX, to hybrid (a combination of voice and electronic price contribution) in markets such as Interest Rates, Credit Derivatives, HY and IG bonds, FX Derivatives and Energy and Commodities. In addition to live markets, we also operate a number of sophisticated auction and matching platforms across a range of products globally.
We are one of a very few firms that operate in this capacity with such a complete and extensive global footprint geographically and across the product spectrum.
In which regions/countries is Tradition active?
Spanning all major regions, Tradition has developed a worldwide network of offices in 28 countries. We cover all the key financial centres around the globe, where we have close and long-term relationships with a wide range of counterparties. We can therefore provide clients with a liquidity hub in the jurisdiction of their operations, as well as the necessary intimate knowledge of local markets and products.
Does Tradition have a bias or ‘axe’ in the markets in which it operates?
No, Tradition operates as a neutral intermediary in markets either in a pure ‘matching’ capacity or on a ‘matched principle’ basis. We do not trade on our own account, nor do we advise on trading strategies or direction. Tradition’s global broking business acts as an aggregator of liquidity and indications of trading interests from hundreds of clients across hundreds of products globally. Contribution and access to this liquidity allows our clients the quickest, most efficient model available to see the best pricing and depth of liquidity in not only liquid OTC products, but also in many products across asset classes in which liquidity is sparse and difficult to source or execute on.
In which asset classes does Tradition operate?
TraditionDATA provides consistent, high-quality financial market data that reflects real price interest in global OTC Swaps markets, covering: Interest Rate Derivatives, Energy & Commodities, Credit & Fixed Income, and FX & Money Markets.
Which products are covered within these asset classes?
You can find a full list of our product offerings here.
Does the data collected come from regulated marketplaces?
Yes. Across the globe Tradition’s activities are fully regulated in each jurisdiction and the platforms/venues we operate are registered with the relevant authorities. For example, in the US we operate as a SEF, Introducing Brokers, Broker Dealer etc; in the UK we operate as an investment firm with OTFs and MTFs; and in Asia we operate as Recognised Market Operators, as well as firms dealing in derivatives running various platforms including an ETP in Japan. We take our regulatory structure very seriously and are often seen as being at the forefront of platform development under the new global regulatory landscape.
What perspective on financial markets does Tradition’s data provide?
Tradition’s data provides indications of live tradable prices in institutional size in products (liquid and illiquid) not available from exchanges or other markets. Tradition’s data is completely neutral because, as we are not a trading firm, we are not making prices, merely observing - without bias - prices available in the market and making them available to our data clients for use across multiple business areas in which neutral and independent data is becoming a highly sought-after product.
Does Tradition collect data from every market it operates in?
Yes, it is Tradition’s practice to capture as much data as possible as it goes through our various businesses. However, not all data is made commercially available.
How is Tradition’s data sourced and collected?
Tradition’s data is sourced predominantly from clients operating in and around the global OTC markets and is augmented by analytics (eg. for the purpose of Volatility Surface generation) developed by our firm’s highly qualified global analytics group. Each price (indication of interest or order) from a client is recorded as an active and observed market price at the time of receipt. Trades are recorded and stored as and when they happen. The data is collected into a centralised platform in a number of ways and from many places depending on the nature of liquidity in the related market.
In markets where Tradition has deployed fully electronic marketplaces, data is captured and stored in real-time.
In markets where the nature of liquidity has not extended to a fully electronic structure – ‘hybrid’ markets (eg. Trad-X and Volbroker, our businesses/platforms for Interest Rate and FX Derivative products respectively, and our various platforms for Credit and Fixed Income products), data is collected both from electronic and voice orders provided directly by market participants and from voice orders entered on behalf of participants by Tradition brokers.
Finally, in illiquid markets where voice desks are the primary platform for liquidity formation and execution, data captured is a product of proven curve, spread and correlation analytics populated with live orders, and trades and enriched with indications of interest to give the most appropriate indicative prices.
How frequently is Tradition’s data made available?
As Tradition’s data is captured in real-time across virtually all of our marketplaces, our data can be made available, depending on customer requirements, in (a) real-time, (b) via intra-day snaps, (c) in End-of-Day files or (d) historical files spanning days, weeks, months or even years as available on a product-by-product basis.
Does Tradition produce ‘modelled’ data?
In certain markets we use analytics to build out volatility surfaces or to generate implied prices for trading purposes. These prices are fully supported and backed by our global analytics team and are based on internal indicators rather than externally sourced data.
Does Tradition store and make available its historic data?
Yes. Although this will vary product-by-product, Tradition has some data going back over 15 years. This data is stored in a consistent format and can be made available upon request.
What technology does Tradition use to collect, manage and distribute its data?
Tradition uses a combination of industry market data systems and in-house technology to collect the data from the various sources. Once the data is collected, it is standardised using Tradition’s real-time market data rules-based engine. This formats the data to make it available to the Tradition market data real-time distributor for customers that want to receive a direct feed.
Our internal market data backbone processes an average of 25,000,000 ticks per hour and is tuned for high availability, high throughput and low latency. Bespoke in-house distribution layers allow Tradition the flexibility and agility to meet individual customer requirements without impacting the core market data backbone and existing customers.
Which data and/or technology standards does Tradition adhere to?
Tradition uses a large range of market data distribution APIs such as FIX, web services and other industry standards protocols. Tradition’s strategy is to maintain its market data environment in line with vendor standards and recommendations to ensure availability, reliability, scalability and interoperability.
Which types of firms should be considering using TraditionDATA?
Any firm that has the need for high-quality, independent market data associated with global OTC Swaps (cleared and uncleared) and/or listed products in the financial markets. Existing clients of our data business span all sectors of the global marketplace and include global and regional banks, hedge funds, asset managers, pension funds and other financial institutions, analytics firms, risk system providers, proprietary and algorithmic trading firms, global major vendors, regional and market specific vendors and audit firms.
Which areas of my business should be considering using TraditionDATA?
Our data serves a multitude of purposes spanning the full range of processes and functions performed by many types of firms.
Across our client base today we see research firms and regulators using our data to analyse market activity; trading firms using our data as input or for sanity checking price calculations; service providers using our data as a key input metric to risk analysis and mark-to-market calculations; exchanges using our data for input to EOD pricing for margin calculations; and market participants using our pricing as a key indicator of where global OTC markets are pricing and trading at any point and using our historical data to run regression testing on models being run developed for future use.
How is the data made available?
Flexibility is one of the core strengths of our offering, and Tradition’s data is therefore available in a variety of ways. Thanks to our advanced internal data management systems, data can be delivered direct from our business to your internal infrastructure via a number of protocols including:
- Real time streaming options delivered over dedicated circuit
- MarketLink TCP/IP
- FIX (your spec or ours)
- ETA/UPA direct feed into TREP
- Bloomberg Terminal for Display only
- Bloomberg B-PIPE for application usage
- Thomson Reuters Eikon for Display only
- Thomson Reuters Elektron for application usage
- Real time options delivered over VPN (ISP)
- HTTPS Web socket
- MarketLink TCP/IP
- Snapshots (Inter-day, Intra-day, End Of Day and Bespoke)
- HTTP/HTTPS download
- SFTP download / Upload
- Historical Data
- HTTP/HTTPS download
- SFTP download
- SFTP upload
Alternatively, data can be supplied via one of our global distribution partners such as Refinitiv, Bloomberg or another global vendor platform.
Must I come to Tradition to get access to the data?
No. In addition to delivering data direct to you from our internal infrastructure, our data is also available from a number of authorised distributors including, among others, Bloomberg, GOTTEX, ICE, Markit, NEX, Numerix, Quick and Refinitiv.
Does Tradition partner with anyone in the data business that could benefit me?
Yes. Tradition has carefully selected and works with partners that we believe add supply chain value, expertise and distribution efficiency across various asset classes and regions. A list of our accredited partners is available here.
What is the fee structure and how do I acquire Tradition’s data?
Sales quotes on fees associated with data usage are made available upon request. Please contact us to find out more.
If I am a trading partner of Tradition’s brokerage business, do I get to use the data for free?
As part of our day-to-day brokerage service, data and prices produced by our desks are made available to traders on an on-going basis on an ‘as is’ model throughout the trading day. This provision of data to traders is considered part of our core brokerage service and is free-of-charge.
However, when data is consumed beyond that of the pricing relationship between the trader and the broker desk and that data is (a) being consumed into internal applications, (b) is used to facilitate various services within the firm, (c) is being seen by individuals beyond the trader him/herself and (d) a level of ‘professional’ service is expected by the firm for the data it is consuming, then ALL data covered by any or all of these use cases is subject to a Data License Agreement and an associated License Fee depending on the usage grant.
Are there pre-set product packages that I must purchase?
At a base level yes. However, we have recently brought much more granularity to the way we make our data available. Many firms take a highly holistic view of how data is sold, which typically leads to clients buying or subscribing to much more data than they actually need. Tradition’s data is available at global, regional, asset, product sector and product levels, either vertically within regions or horizontally across regions. This ensures that you are able to buy only the data you are looking for and not pay for data that you don’t need or want.
How are these product packages structured?
The full breakdown of how our Product Packages are structured can be found here.
What are the restrictions on the use of Tradition’s data once I have acquired it?
Depending on your use case (display-only screens, non-display applications, black box technologies etc) and the agreement you sign with TraditionDATA, your usage grant can vary from specific applications or user environments in specific regions all the way through to global unlimited use within your firm or even in some cases the right to onward distribute the data to clients of your firm.
Am I allowed to re-distribute the data to my customers or outside of my firm?
Unless you are specifically licensed under a Data Distribution Agreement, you are not allowed to distribute data in any way or to anyone outside of the (your) licensed firm.
Does Tradition operate regulated businesses?
Yes. In all regulatory jurisdictions in which we have operations we are fully compliant with the regulatory landscape as it relates to the businesses we run and the platforms we operate. Most recently, the implementation of the Dodd-Frank Act in the USA and MiFIDII/MiFIR in Europe has seen us restructure our operations and launch platforms in compliance with trading and liquidity formation requirements, namely SEFs in the USA and MTFs/OTFs in Europe. As a firm, we are actively engaged at all levels with regional regulators and often at the cutting edge of regulatory change.
How does Tradition’s data help me with my regulatory requirements?
In a number of instances it has been decreed by the global regulatory bodies that data used for, for example, Risk Analysis and Mark-to-market must (i) be independent, (ii) be relevant and (iii) should come from more than one source.
Our independent and neutral position in the facilitation of trading in global Listed and Swaps markets means that TraditionDATA is independent by definition. In addition, as the prices represented are for interbank size, they are relevant to any holder or valuation provider of material positions in any instrument in which we operate.
How does Tradition support its data clients?
Tradition has regional and centralised support teams that understand our data, the markets it comes from and the technology used to capture, manage and deliver that data to the client community. We have support systems that not only ensure that once an issue is recorded it is never lost, but which also provides an escalation process that ensures any issue is prioritised and dealt with in the appropriate manner. Clients are kept informed of progress with any issues on an ongoing basis until they are resolved. TraditionDATA’s support team comprises both FISD and vendor-certified market data engineers.
Please see relevant contact information here.