Opening Cross: Forget ‘Keep it Simple, Stupid.’ Think KIDD—’Keep it Diversified, Dummy"
For example, Bureau van Dijk Electronic Publishing has expanded the breadth and depth of its fundamental data on listed companies around the globe. In some of these cases, BvD was expanding existing data, and in some cases is sourcing the data itself, while in others—for example, in Africa and Central and South America, where it’s harder to obtain reliable data—it is using niche local providers where partners are a necessity
Another example of someone using partnerships to diversify its content is German data vendor VWD, which is adding US Treasury data from Tullett Prebon Information to its Market Manager terminal, in response to demand from European clients for more US data. The relationship with TPI—which includes prior deals for the broker’s data—works out well for both companies: not only does VWD diversify its content lineup with data that might be more expensive and time-consuming to source elsewhere, but TPI gains revenues from the VWD clients that subscribe to the data. And when VWD signs content deals with other partners that include TPI’s data—such as with German software provider Bellin—both vendors win, and TPI gets to diversify its business not just to partners and their clients, but also its partners’ partners.
Similarly, S&P Capital IQ is pursuing a “rapid expansion” of its research and estimates coverage in Latin America and Asia Pacific, using local staff to build out its network of contributing broker-dealers and third parties, which currently numbers 1,400 sources in 120 countries.
And diversification is a big factor behind the London Stock Exchange’s proposed acquisition of US index provider Russell to merge with its own FTSE index business, to give the LSE and FTSE a bigger foothold in the US market, and specifically in the exchange-traded fund marketplace, at a time when the providers expect the passively-managed investment sector to grow at a compound annual growth rate of 18 percent between now and 2020.
LSE’s plans to consolidate the technology platforms that FTSE and Russell use to calculate and distribute their index data will doubtless please both company execs and shareholders, as a result of reducing three sets of platform costs into one. However, LSE’s plans to “migrate [Russell] to a fee policy and a commercial approach closer to FTSE” may not sit so well with some of the Russell management that LSE has put specific provisions in place to retain. Like some of its rivals, FTSE has gained a reputation—rightly or wrongly—for aggressively chasing revenue via commercial policies. And it shows: For the most recent financial year, FTSE’s index revenues were $296 million, compared to Russell’s $162 million, despite FTSE having $1.2 trillion fewer assets benchmarked to its indexes.
And as commercial policies become more convoluted and complex, and the demands of the data industry become more diversified, so must the expertise of the professionals that deal with market data. This is proving especially true in marketplaces outside the main global financial centers, where professionals don’t get the same level of exposure to broader experiences beyond highly localized issues. Hence, as the latest body to adopt industry association FISD’s Financial Information Associate certification, the Johannesburg Stock Exchange is not only making its own data staff take the exam, but is also promoting it to its clients and other regional exchanges, blazing a trail for others to pursue a more diversified approach to data management.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
How ‘Bond gadgets’ make tackling data easier for regulators and traders
The IMD Wrap: Everyone loves the hype around AI, especially financial firms. And now, even regulators are getting in on the act. But first... “The name’s Bond; J-AI-mes Bond”
Waters Cooler: AI tells it like it is… or does it?
A weekly round-up of stories from us and beyond. Plus, fun Scottish facts.
Google teams up with Linklaters on GenAI contract analysis project
While the large language model is unique to Linklaters and legal documents, Google believes financial services firms will also benefit from GenAI when it comes to contract analysis.
Man Group’s head of risk engineering doesn’t trust ChatGPT for managing risk
Risk managers have a duty to know how AI is being used within their firms. At a recent event, execs from Man Group and others discussed the benefits and pitfalls of AI in risk management.
Banks seemingly build more than buy, but why?
Waters Wrap: A new report states that banks are increasingly enticed by the idea of building systems in-house, versus being locked into a long-term vendor contract. Anthony explores the reason for this shift.
Who’s afraid of the big, bad AI computer?
The last two years of GenAI’s hype cycle have re-energized the conversation around what AI technology can offer. It’s also brought fears, concerns, and post-apocalyptic narratives. Nyela thinks much of it is unwarranted.
Deutsche Bank experiments with regulatory GenAI tool
Project Aggie can complete what business domain experts typically do in a few hours in under five minutes, the bank says.
Startup takes aim at data notifications burden
The rising tide of daily notification messages from exchanges is threatening to overwhelm data professionals. A new entrant is looking to help.