<< Back to articles list

OTCStreaming V2 is an all-in-one solution for accurately and affordably investing in credit derivatives and OTC products, from data mining to portfolio analytics. It mines the market data that each OTC market investor receives from market makers, enrich and aggregate the data per security, and creates on-the-fly pricing environments for OTC products. OTCStreaming's unique business model fully respects client data ownership and confidentiality. Client data is neither shared nor redistributed and is stored in a dedicated database. The client's OTCStreaming feed provides real-time for:

• Portfolio valuations of derivatives
• Portfolio stress scenarios
• Portfolio bid-offer spreads
• Market investment opportunities
• Research on OTC market micro-structure

How It Works

Clients request market makers to send their runs to a client-specific email address. OTCStreaming is ready to use, streaming market prices and deriving analytics in real-time. OTCStreaming retrieves client market data emails, extracts prices, and identifies or creates the related securities within the client's space. It then begins constructing credit curves and volatility surfaces. The system dynamically adjusts its precision based on the diversity and volume of data received, handling anything from a few emails to thousands, and from a single maturity point to a complete term structure. Users' market analyses are aligned with their market access, including liquidity, as OTCStreaming generates bid and offer pricing data. The data are stored in a dedicated database per client. OTCStreaming provides access to the data stream via a web application, an Excel add-in, and a set of API endpoints. These endpoints offer extensive capabilities for pricing, aggregating, and manipulating data to meet user requirements.

OTCStreaming V2 Use Cases

OTCStreaming is highly modular, allowing users to select only the services they need to get the best value for their subscription.

• Starting a new credit business, OTCStreaming is the solution of choice to get started with minimal tech investments.
• Sharing the vast amount of OTC market data within a company, OTCStreaming efficiently disseminates data to all authorized users through its various access points.
• Looking for computing swing prices and portfolio unwind costs, OTCStreaming computes the bid and offer of securities and derivatives based on true data.

A Unique No-SQL Framework

To reduce development costs and easily add new services, OTCStreaming V2 has introduced two major pieces of technology:

• A reference data storage technology derived from the company's own development, Record Ledger.
• Typed documents for market data and market data sets, and a generic method for enhancing these documents through the pipeline. This framework is well adapted to combine expert knowledge and AI tools in maintaining reference data.

Next steps

With an initial focus on credit derivatives, the new technology and architecture make the solution ready to incorporate any type of security and market data flow, bridging OTC markets with liquid markets. OTCStreaming will initially focus on fully integrating analytics for bonds and will continue to expand its capabilities to support a broader range of OTC products, ensuring comprehensive coverage for its clients.

<< Back to articles list