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 DataCompile  with pro-Feed

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DataCompile with its SST20 algorithm is an institutional-quality reference rate for the strength of 10 single currencies. The SST20 is licensed to AccuStrength clients who use it as the reference rate for tens of millions of dollars in outstanding derivative assets. The overview below gives a conceptual explanation of the algorithm underlying SST20 and an explanation of why a truly robust index is necessary for this market.

 Robust Reference

As the technology for currency market analysis continues to evolve and grow, so does the need for instruments like AccuStrength to help sophisticated investors manage risk. The unique dynamics of the currency markets make it difficult to determine a reliable and broadly-applicable strength at a given moment. Large spreads between rates at different exchanges and near-zero visibility of large, off-exchange trades mean widely varying data inputs. Looking at the world’s highest-volume exchanges, it’s not uncommon to see spreads of 2-5% or more, particularly during periods of high volatility. The frequency of single-venue anomalies, where the rate of one exchange diverges substantially from the others can affect speculative traders.

Data Inputs

DataCompile draws from a variety of data sources to make the SST20 index the market’s most robust, institutionally-focused reference rate. In addition to data from various global exchanges, DataCompile is also the only company in the world able to incorporate “weighing” for individual currencies. The data is obtained through unique agreements with our institutional clients.

Weighting Algorithm

With each constituent data source indicating a different price for similar pairs, the weighting of each input on SST20 is considered.  Accordingly, DataCompile employs a proprietary algorithm to ensure the SST20 serves as an appropriate reference in all market environments. When calculating the strength, all data is immediately cleansed and validated to ensure the reliability of any contributing feeds. Data from all inputs are weighted against each other based on recent- and long-term activity and the variance in price across all data points.

The result is a reference rate that follows market liquidity in real time while discounting any anomalous trading.

Index Performance

While the exact algorithm behind SST20 remains proprietary, the performance of the index speaks for itself. data is provided 24/7 with  98.92% uptime.

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Canadian data companies doing business worldwide.

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