In the dynamic landscape of financial markets, the ability to conduct advanced analysis of market trends and performance is paramount. This capability empowers participants to navigate swiftly through changing conditions, fostering not only their adaptability but also enhancing market confidence.

The accessibility to such crucial information becomes a catalyst, propelling improved market quality and, in turn, bolstering liquidity. The availability of data is a cornerstone of the JSE’s strategy to empower participants to make more informed decisions, promoting positive transformations in market behaviours.

‘We see that the future success of our Information Services business will come from our ability to foster innovation, our ability to create value from our data assets and ensure their effortless accessibility to our clients,’ says Soraya Seedat, Data Strategist at the JSE.

‘In January last year, we launched our Trade Explorer data-analytics platform. Trade Explorer currently targets the trading participants of our cash equity and ETF markets. It provides sophisticated analytics tools that enable users to understand market liquidity and flows, market share, business concentration and execution quality. It also delivers tools for analysing trading patterns and reviewing trading decisions. The platform uses modern cloud channels and is highly accessible to clients without any IT integration or support,’ she says.

‘Exchanges typically provide wholesale data, which their clients transform into insight using their own systems, tools and algorithms. No other exchange offers trading data-analytics capabilities delivered directly to its members. In July 2023 the JSE – together with big xyt – founded big xyt ecosystems, a new company and partnership, to assist global exchanges and other trading venues in offering data-analytics platforms. This will allow them to tap into innovative data-analytics solutions by leveraging the JSE’s experience in South Africa, and will further entrench our position as a centre of innovation for financial markets on the African continent.’

Given the sensitive nature of financial data, Seedat says several measures are in place to ensure data security and compliance with regulatory requirements in the delivery of these analytics solutions.

‘We have implemented robust measures to ensure the utmost security and compliance. This includes utilising big xyt’s private cloud services, advanced encryption protocols, access controls and regular security audits to safeguard against unauthorised access. Our adaptability extends to the requirements of new jurisdictions and, as we forge connections in new markets, we assess and apply the necessary security protocols. This ensures that the integrity and confidentiality of our data assets and analytics are maintained.

‘Our solutions, being highly scalable and adaptable, enable us to implement or bolt on additional capabilities with ease, allowing us to stay agile and responsive to evolving security needs. Additionally, our practices align closely with regulatory requirements, and we have applied stringent adherence to industry standards to maintain the integrity and confidentiality of financial information throughout the data-analytics delivery process.’

She says Trade Explorer has so far garnered good feedback from clients. ‘Early indicators suggest a positive reception, with clients recognising the value that the product brings to their decision-making processes in the dynamic trading environment. The accessibility and democratisation of analytics have resonated well, enhancing client engagement around innovation and enabling the exchange to create new value from our data assets.’

As far as future developments for Trade Explorer are concerned, Seedat says the JSE will continue to adapt to evolving market needs through the partnership with big xyt.

‘Our commitment to future developments and enhancements are steadfast as we plan to introduce several new advanced analytics features during Q1 2024 that incorporate cutting-edge technologies and improved scalability to stay ahead of market needs. A teaser of some of the new features includes insights into dual-listed securities, sophisticated enhancements to market share analytics to include an executive summary dashboard and a business concentration dashboard, enhancements to our execution analytics capabilities, and additional intelligence on peer group analytics.

‘The partnership with big xyt enables us to leverage their expertise, ensuring swift adaptation to emerging trends and market demands. By fostering collaborative relationships, we remain agile, responsive and well-positioned to continuously enhance the platform, providing our users with innovative solutions that align with and anticipate evolving market needs, at a low cost.’

By Patrick Farrell
Image: Gallo/Getty Images