For a new desk, how much would data + infrastructure cost?


For new trading desks,  I'm wondering how much data + infrastructure would cost? not looking for low-latency trading, aiming for mid-freq stat arb

I'm trying to figure out the cost of historical data, L2 order book data, and any execution related costs (I imagine just using TT for this)

BBG ~ $50k a year (no L2 data)

what about other data sources or costs that I have to take into account?

 
Most Helpful

Think 25-250k for historical data depending on the specific needs (e.g. what asset classes? do you need historical LOB? historical L3? OPRA data?). Real time data will really depend on what you are doing - you can get OKish data for 0.5-2k a month if you are not latency sensitive. If you are, another 10-15k/month in data and colo (at least) and God have mercy on your soul :) If you are only trading futures (since you brought up TT) it's all much less, obviously.  

What makes you want to strike out on your own, may I ask?

I have a friend who lives in the country, and it's supposed to be an hour from 42nd Street. A lie! The only thing that's an hour from 42nd Street is 43rd Street!
 

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