New White Paper Lays Out Methods for Financial Institutions to Make the Most of Trading Flow Data

LeapYear study focuses on areas where trading desks can create competitive differentiation

SAN FRANCISCO–(BUSINESS WIRE)–Now is the time for banks to liberate their data and create a new market edge from their unique data assets. That is the key finding from a new white paper, called “New Edges: How to Make the Most of Trading Flow Data,” prepared by Aite-Novarica Group on behalf of LeapYear, a software platform trusted by the world’s largest institutions to safely unlock the full value of their data.

The white paper details a study uncovering use cases relevant to sharing sensitive data within financial institutions that generate new trading edges. Data standardization in capital markets has created informational parity, making it difficult for firms to develop trading edges.

The key takeaways from the study include:

• Flow data may be one of the last sources of alpha available uniquely to a bank.
• Even in today’s data-driven world, there are a wide variety of untapped data sources for use cases that can drive competitive edge.
• Solving for client privacy is at the heart of the most valuable data applications – banks must successfully satisfy this privacy mark to fully achieve in the space.
• Existing techniques to protect client privacy simply leave too much untapped value on the table. Banks must move past their status quo and evolve how they think of client privacy and data value.

“Forward-thinking sell-side firms are developing innovative data products for their clients,” said Ishaan Nerurkar, CEO of LeapYear. “We wanted to do this study to help banks understand how they can provide clients with highly valuable datasets, such as granular trade flows, without compromising on client confidentiality.”

The study focuses on areas where trading desks can create competitive differentiation and unlock fresh alpha. “New Edges” also explores how to share sensitive data while complying with regulations and protecting sensitive data.

“The logic and appeal of a standard, independent, validated, real-time, highly secure, and easily implemented solution for sharing insights from sensitive data in capital markets are universal. What is clear from the Aite-Novarica report is that LeapYear’s solution has many broad applications and can be used to drive revenue and mitigate risk for both buy-side and sell-side firms,” said Hans Morris, who is an advisor to LeapYear and managing partner of Nyca, a fintech venture firm.

The findings were presented during a “fireside chat” on April 12 in New York City. The white paper can be downloaded here.

“This white paper provides useful and actionable ideas for leveraging flow and sensitive data across an enterprise,” said Vinod Jain, Senior Analyst at Aite-Novarica Group.

About Methodology

LeapYear commissioned Aite-Novarica Group to survey market participants about use cases for sharing data inside a firm. Aite-Novarica Group conducted a qualitative survey of market participants from September 2021 to December 2021 to gather their views on sharing flow data within a firm. Participants in this study are primarily from front-office sell-side desks across asset classes (67%) and from the front office at asset management firms (22%).

About LeapYear

LeapYear is the software platform trusted by the world’s largest institutions to safely unlock the full value of their data. Only LeapYear provides mathematically proven privacy for previously impossible data sharing objectives: across business lines, across national borders, and to third parties. Leading companies in financial services and healthcare have deployed LeapYear to transcend boundaries set by conventional data strategy, build new data partnerships, offer new data products, and reach new levels of profitability, all while keeping their data fully protected. Experts from all disciplines – government agencies, international regulators, quant research groups, healthcare privacy auditors, and cryptographers – have validated the rigorous, future-proof privacy technology at the core of the LeapYear platform. Companies that want to compete in an AI and data-driven economy must put all their data into play and do so with the highest standard of data protection. LeapYear is built for this purpose: embedding privacy and trust into the future of data. To learn more, visit www.leapyear.io.

Contacts

Rachel Verne

rachelverne@Bospar.com
858.663.2453