Thought Leaders in Big Data: Interview with Sandy Steier, CEO of 1010data (Part 2)

Sramana Mitra: So it is both NYSE branding and NYSE data and you are providing the framework for analyzing and manipulating that data, but it is their data and their brand.

Sandy Steier: That is correct.

SM: And who are the customers of the NYSE who are buying and using this technology? It is an OEM relationship, I imagine.

SS: It is not quite an OEM relationship. When somebody logs into their site and does the analysis, they are in 1010data. It is apparent that they are in 1010data.

SM: Let me ask a different question that will help us understand how your business model works. Who pays for this?

SS: In this case, the NYSE pays.

SM: So, as far as you are concerned, you just charge the NYSE once, and they deal with however they charge their customers.

SS: That is correct.

SM: Is it the analysts at various banks who are using this product?

SS: Yes, and also others who want to trade securities.

SM: Does that system have APIs to plug into these various automated computer-based trading systems and analytics systems that are operating all over the place?

SS: We have APIs to connect to our system. It sounds like you are talking about our real-time trading capabilities. Our system is an analysis platform for historical data.

SM: Analysts often take historical data and try to extrapolate from that on trades. Is that a use case you are facilitating?

SS: That is the use case we are talking about. The use case that we do not handle is the implementation of the trading strategy. One look at streaming data as it comes in makes trading decisions in real time. Those decisions are usually based on a historical analysis. The historical analysis is something we facilitate. The implementation of the trading strategy in real time is something that we do not facilitate.

SM: So, human beings are using the data to analyze and understand trends and then creating algorithms that feed into the automated trading systems; you are not directly feeding into those.

SS: That is correct.

SM: Let’s do another use case from finance, and then I would like to also probe into what is happening in other segments.

SS: The other big area in finance for us is the area of mortgage-backed securities. When I was on Wall Street, most of the people that I spoke to had no idea what mortgage-backed securities were. It was an arcane market that was the largest market in the world, but it was something people were completely unaware of. Everybody knew about stocks and bonds, but nobody knew about mortgage-backed securities. That has changed – unfortunately – and now everybody knows what mortgage-backed securities are because they destroyed the world.

This segment is part 2 in the series : Thought Leaders in Big Data: Interview with Sandy Steier, CEO of 1010data
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