Quincy Eyes Asia, Fixed Income for Growth

After initially focusing on the US and Europe for equities and derivatives, Quincy is now looking to Asia and bond markets.

Low-latency market data provider Quincy Data plans to add fixed income data to its Quincy Extreme Data microwave service and expand its footprint to Asia in 2016, after completing its London offering at the end of last year.

In December, Quincy’s sister company, microwave network provider McKay Brothers, completed its UK millimeter wave network with a new Point of Presence (POP) adjacent to the London Stock Exchange in central London.

Quincy can now leverage McKay’s network to provide microwave-delivered market data between key London markets─including Equinix’s LD4 location in Slough; LCH in the London Docklands, which houses Thomson Reuters’ matching engine; Interxion in central London; ICE Liffe and Euronext in Basildon, the new central London PoP adjacent to the LSE─and Equinix’s FR2 datacenter in Frankfurt, which houses Deutsche Borse’s derivatives markets.

Quincy originally launched its service in the US before expanding to Europe, but Stephane Tyc, co-founder of McKay and Quincy Data, says the “next logical step” is now Asia. “The physics of building a microwave network and providing data in Asia is the same, but it is more difficult as the region is less known to us. We have offices in Paris and California, but we don’t have boots on the ground in Asia,” Tyc says, adding that Quincy will likely establish a presence in Asia in 2016.

Closer to home, Tyc says the biggest trend to impact microwave data providers in 2015 was the increasing volume of high-frequency trading activity in the US bond treasury markets, which has “opened a lot of eyes” and renewed interest from traditional firms in microwave data. “There was an awakening in 2015,” he says. “HFT began dominating treasury markets… and that spurred a lot of interest from firms that didn’t look at it before. Previously, people sitting in banks were taking a risk adopting microwave, and now the risk is not adopting it…. Microwave isn’t just about latency arbitrage anymore; it’s the thing that everyone uses.”

As a result, Quincy is focusing on providing new contracts over the course of the year as and when they begin trading. For example, CME Group is due to launch new Ultra 10-Year US Treasury Note futures and options in the first quarter of 2016, which the vendor plans to add to its QED service.

Quincy already distributes data on US Treasuries from Nasdaq’s eSpeed trading platform in Carteret, NJ─which it began carrying in 2014─to other New Jersey-based trading hubs on its network, including datacenters in Carteret, Secaucus, Weehawken and Piscataway, leveraging microwave connectivity provided by McKay Brothers.

Tyc says the vendor would also like to provide data from interdealer broker Icap’s BrokerTec market, but cannot yet as the broker does not make its data available for distribution data via microwave networks.