Open source makes another move on Wall Street

Open source makes another move on Wall Street

Summary: Bloomberg announced its Bloomberg SYMbology (BSYM) would be available free back in November. That news was noted mainly by insiders. Promotion alongside the New York Stock Exchange is a big deal.

SHARE:
TOPICS: Open Source
6

Open source has made its third big move on Wall Street with Bloomberg's decision to open source its proprietary stock identifiers alongside NYSE-Euronext data streams.

I say third because Marketcetera's open source trading platform, under the GPL, has been gold for almost a year. A SaaS version of Marketcetera for portfolio management was also released last year. (They must be working hard there -- their latest blog post is dated November.)

Still Marketcetera is a start-up, Bloomberg a major player.

Bloomberg announced its Bloomberg SYMbology (BSYM) would be available free back in November. That news was noted mainly by insiders. Promotion alongside the New York Stock Exchange is a big deal.

So what's going on?

The stock symbols you see in a newspaper don't fully describe what you can buy and sell. Go to Bloomberg's site for its open source symbology and input a known stock symbol -- any symbol.

What you will probably see are page-after-page of puts and calls, at different dates, on different exchanges, from different sources, in different configurations. (There are 78 pages of these for Google alone.) Getting the best price through an automated system requires that your computer know all the unique identifiers for these securities.

This is a big part of Bloomberg's "secret sauce." Until recently you could only get this data through a Bloomberg terminal, using an expensive Bloomberg data stream.

So why is Bloomberg publishing these codes, and in time its algorithms for making them? Are they crazy?

As the A-Team Group noted when the symbols were first released in November, they are crazy like a fox. Here is why:

  1. Trading is moving toward higher levels of abstraction, with people replaced by computer programs. Releasing the codes gets Bloomberg inside these new programs, and makes its data feeds important in this new method of trading.
  2. This is a real shot across the bow at Standard & Poor's and Thomson-Reuters, its main rivals. Both are being investigated in Europe for the monopoly created by Reuters' Instrument Codes (RIC), the main BSYM rival. Now there is a free alternative. And if you're getting the codes free why not buy the data?

It's a good lesson in what might be termed the offensive use of open source, as opposed to its defensive use. Open source can force open opportunities that companies were locked-out of, just as it can maintain customer loyalty for services and support.

I will be interested in seeing what Marketcetera does with this news. With open source symbology and data feeds, open source trading platforms can get much more powerful.

Topic: Open Source

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

6 comments
Log in or register to join the discussion
  • Where is the source code? I don't see it on their site.

    [b] [/b]
    AzuMao
    • All you get is the right to use their symbols.

      http://www.ksvali.com/2010/02/bloomberg-open-symbology-bsym-
      bloomberg-open-sources-its-security-identifier-universe/ describes
      what you get: the right to use any Bloomberg symbol without license fees
      and without having to ask permission. Personally, I would have call this
      an 'open interface', not 'open source'. But 'open source' is hipper.
      Bloomberg is a master of communication and they chose 'open source.'

      They didn't do something radical like releasing their proprietary code
      under the GPL.
      shis-ka-bob
      • That's like selling a Model T and calling it a Ferrari.

        [b] [/b]
        AzuMao
      • RE: Open source makes another move on Wall Street

        Open source makes another move on<a href="http://www.sixtyfour81.com/"><font color="light&amp;height"> about it</font></a> is bank that <a href="http://www.stopthecoalition.com/"><font color="light&amp;height">website</font></a> attacked from the <a href="http://www.mediabanger.com/"><font color="light&amp;height">site support</font></a> from any soldier <a href="http://pikeplacepolitics.com/"><font color="light&amp;height">site</font></a> to the light <a href="http://www.brawlnball.com/"><font color="light&amp;height">home page</font></a> is great Wall
        musdahi
  • Message has been deleted.

    efsane
  • Message has been deleted.

    zakkiromi