Opening Cross: Market Data’s Facebook Status Would Be ‘It’s Complicated…’
As data becomes more sophisticated, data management becomes more complicated.
Speaking of complexity, let’s start with the Chicago Board Options Exchange and its Complex Order Book data: here, CBOE is doing something nice for data consumers by slashing its fees to use the data for non-professional investors and the brokers that serve them. Of course, CBOE hopes to gain as a result, through increased participation in its markets via spread trading—a simpler way to participate in the Complex Order Book, which is by definition “complex.” However, the exchange’s fees are also fairly complicated. Some are waived if you subscribe to another product. Some fees apply only to view-only terminals. I don’t mean to unfairly single out CBOE. If anything, these fees are actually fairly straightforward compared to some others.
This is why third-party specialists are so often required to interpret exchange policies, and why tools such as Ballintrae’s BERRD (Ballintrae Exchange Rules and Regulations Database) exist—to standardize explanations and implementations where no real standards exist, since competing exchanges tend not to cooperate on drafting standard policies and licensing documents, despite the efforts of groups such as FISD. And ultimately, it’s the reason for audits: if policies weren’t so complicated, no one would accidentally find themselves non-compliant—at least, so the argument goes.
Aside from contract complexity, data itself is becoming more complicated. For example, fundamental analysis provider YCharts has introduced a funds screening tool that officials say takes the complexity out of running complex screens on large amounts of data with complicated characteristics and relationships. And as data increases and becomes more sophisticated, the relationships between data also become more complicated.
And as data becomes more complex, so too does the relationship between consumers, suppliers and their data, which—again, like any relationship—requires the involvement of all participants if it is to remain healthy. No single party can be doing all the work while the others are complacent. And when parties reach an impasse—say, on contract negotiations—they all need to be prepared to compromise to meet in the middle. If the situation is not salvageable, they also need to be prepared to walk away. Too many consumers and suppliers remain in tense, loveless “marriages,” grumbling about each other, but neither prepared to make a clean break. Why? Sometimes it’s impossible to replace a service with comparable content. In fact, sometimes, it’s impossible. But either way, it can be a very complicated process to identify suitable services, let alone procure them. And frankly—especially assuming that firms are already using the most cost-effective services they can find—it can also be a costly process to find, review and implement other services, without even considering the internal cost of making everything work with the new data.
But then, that’s why firms employ data experts who are not just used to dealing with this complexity, but who thrive on seeking out the new and experimenting with alternatives. But with events such as falling oil prices and the Swiss franc uncoupling set to impact banks’ revenues, chances are that—instead of being given free rein to seek out alternatives—data managers will be told to tighten their belts even further, making it even harder to “walk away.” That’s when those experts’ relationship management skills will be in full effect. Perhaps there’ll be room in the budget for some counseling?
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
Asset manager Saratoga uses AI to accelerate Ridgeline rollout
The OMS provider’s AI assistant helps clients summarize research, client interactions, report generation, as well as interact with the Ridgeline platform.
LSEG rolls out AI-driven collaboration tool, preps Excel tie-in
Nej D’Jelal tells WatersTechnology that the rollout took longer than expected, but more is to come in 2025.
The Waters Cooler: ’Tis the Season!
Everyone is burned out and tired and wants to just chillax in the warm watching some Securities and Exchange Commission videos on YouTube. No? Just me?
It’s just semantics: The web standard that could replace the identifiers you love to hate
Data ontologists say that the IRI, a cousin of the humble URL, could put the various wars over identity resolution to bed—for good.
T. Rowe Price’s Tasitsiomi on the pitfalls of data and the allures of AI
The asset manager’s head of AI and investments data science gets candid on the hype around generative AI and data transparency.
As vulnerability patching gets overwhelming, it’s no-code’s time to shine
Waters Wrap: A large US bank is going all in on a no-code provider in an effort to move away from its Java stack. The bank’s CIO tells Anthony they expect more CIOs to follow this dev movement.
J&J debuts AI data contracts management tool
J&J’s new GARD service will use AI to help data pros query data contracts and license agreements.
An AI-first approach to model risk management
Firms must define their AI risk appetite before trying to manage or model it, says Christophe Rougeaux