Financial market data provider Xignite has inked a deal with MSCI to distribute its MSCI Global Equity Indexes through Xignite’s cloud API platform.
MSCI is one of the largest providers of indexes that are used by investors and fund managers to track financial markets and create performance benchmarks. The MSCI Global Equity Indexes are some of the most widely used, and according to MSCI, they serve as the basis for more than 650 exchange traded funds around the world.
With the distribution agreement between Xignite and MSCI, joint customers of the two firms will be able to access the data associated with the MSCI Global Equity Indexes using Xignite’s RESTful APIs, which allow customers to retrieve data in XML, JSON, or CSV formats. According to Xignite, its APIs “are specifically designed to speed development and integration inside new generation web and mobile platforms — allowing firms to focus on providing a unique user and investor experience.”
Targeting new customers, keeping up with existing customers
For MSCI, the relationship with Xignite is more than just another distribution deal. “The digital wealth management space is a fast growing segment in the investment management industry,” MSCI’s Managing Director and Head of Index New Product Development and Data Distribution, Alain Dubois, explained. “Given Xignite’s established presence in the space, we are excited to make our data available to this new audience on its data distribution platform.”
The digital wealth management space is one of the hottest in the financial technology — or Fintech — market, and it is being targeted by a new generation of upstarts focused on building new kinds of experiences for investors that can help them make better decisions and manage their money more efficiently and cost-effectively. In many cases, these experiences mash up data from a wide variety of sources in an effort to present investors with information and analyses that can help them make better investment decisions. Selling to Fintech startups, which are usually incredibly lean and nimble, only requires that data providers like MSCI make their data available via APIs.
But young tech-based businesses aren’t the only ones demanding API access. According to Xignite’s Chief Executive Officer and Founder, Stephane Dubois, “Many large financial institutions beyond the digital wealth management space are also rebuilding their aging legacy technology platforms, following in the footsteps of the Fintech industry. We are beginning to see established firms consuming data from the cloud instead of using the rigid, antiquated, and expensive infrastructures they can no longer afford to support.”
That trend is unlikely to reverse, so expect to see more and more of the data used to make financial decisions distributed through API-based platforms like Xignite’s.