An exclusive partnership will see Genscape’s Cushing Oil Data Storage report distributed via Selerity’s low-latency, machine-readable platform.
The move comes in response to growing volumes of electronic trading in global energy markets, meaning that low-latency access to crude data is of increasing importance for high-frequency and algorithmic traders.
Genscape’s Cushing Oil Data Report is based on measurements of crude reserves held at the Cushing storage facility in Oklahoma. As the physical delivery point for Chicago Mercantile Exchange light crude contracts, crude levels at the facility are a significant indicator of future moves in the energy market. According to Genscape, Cushing’s reserves have fallen by just over three million barrels since mid-November 2011, mirroring a substantial flattening in the price curve.
“The facilities in Cushing can hold up to 10 percent of US oil inventory and play an important role as indicators of market direction for the world’s energy traders,” said Genscape CEO Matthew Burkley. “Working with Selerity will provide us access to sophisticated, technology centric investors engaged in the energy markets.”
Selerity will provide the data at all its co-location points of presence, including Equinix’s CH1 (Chicago), NY2 (NY/NJ) and FR2 (Frankfurt) datacentres. Genscape compiles and distils the data on a twice weekly basis, with the results being delivered to trading firms via Selerity’s network at 9.00am EST every Monday and Thursday.
Commenting on the deal, Selerity founder and chief executive Ryan Terptstra said: “The Genscape Cushing storage figures are watched closely by the world’s oil markets and can have an immediate impact on the West Texas Intermediate Crude Oil price curve. Providing our clients with unique access to this crucial, low-latency data will help them make strategic trading decisions in order to maximize alpha and hedge against market risk. Using our platform, Genscape now has the ability to monetize and deliver their unique content sets to the automated trading market.”