WFIC Diary Day 3: Data Industry Begs for Change
On the final day of industry association FISD's World Financial Information Conference, panelists stressed the need to adapt, whether in preparation for regulation, or in response to new technologies on the horizon, or to respond to competitive pressures.
A prime area for change is data usage and distribution policies, as end-users expressed frustration at still having the same discussions about this topic, and urged exchanges to look beyond counting usage by individual users and to adopt more consistent auditing standards to ease the administrative burden of subscribing to exchange market data.
A speaker from one investment bank even went so far as to say that exchanges seemingly do all they can to encourage firms to trade on their platforms, while doing all they can on the data side to discourage customers from using their data.
Exchange representatives acknowledged the challenge, noting that policy changes always lag behind advances in technology, and that exchanges are reacting to the new and different ways data is being used-for example, by offering more flexible pricing models.
However, end-users said that the administrative burden arises from the complexity of managing different pricing models from multiple exchanges, and the lack of consistent auditing requirements may mean that banks develop inventory management systems geared towards the strictest rules to ensure compliance across the board, and therefore overpay some exchanges.
To help ease the burden, end-users called for exchanges to develop a universal standard so that a firm can undergo a single audit that encompasses all exchanges, though an exchange executive noted that the different policies adopted by exchanges reflect their individual business strategies, adding that it would be a challenge to have all exchanges agree to a single standard.
Though this debate seems to remain at an impasse, other panelists continue to assert that the industry must focus on adapting to meet new challenges and deliver value. One consultant said that for a data vendor to have a viable profit model, it must deliver unique content, such as proprietary news or indexes, and unique capabilities, such as visualization tools to assimilate data quickly.
A speaker the previous day had said that industry must innovate to avoid becoming the frog that allows itself to slowly boil to death in a pot of water, and a panelist from a data provider today noted that the music industry had initially feared Napster, before recognizing it as a cry for help from consumers. Once the music industry adapted itself to serve consumers' needs, it has continued to thrive, and it is time for the data industry to do the same, the panelist said.
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 Data Management
The Waters Cooler: Everybody wants data
We’ve got more identifiers drama, additional CTP bidders, a shiny new AI product and … Moo Deng. Gather around the cooler, folks.
Bloomberg ups focus on quants, intraday strategies
The vendor hopes its OHLC Bar data product will woo new audiences among quant traders and analysts, who have previously had to painstakingly build solutions in-house.
CBOE and Aquis to make bid for European equities tape
The challenger exchanges have plans to become the second public bidder for provider of the European equities tape, following EuroCTP’s incorporation last year.
DORA stalls over identifier dispute
A disagreement over how to classify third-party tech providers on a reporting form known as the “register of information” has held up preparations for the highly anticipated operational resiliency rule in Europe.
FactSet unveils Data-as-a-Service offering
The vendor is introducing the suite of managed services for more efficient data management as emerging technologies, like GenAI, require more from datasets.
Moral models: The ethics of data management
The IMD Wrap: You may be managing data efficiently, but are you managing it ethically? And is that something you should be concerned about? Yes, says Max, you should.
Footsteps in the dark: Private markets’ data quality “problem”
Data quality in the private markets is poor. But is this a quirk of the market or a problem that needs fixing?
Deep in the heart of Texas, market data vets sweat the talent gap
The secrets to unlocking all of market data’s questions and the antidote for all its ills were discussed in Texas last week. Unfortunately, we promised not to tell—not all of them, anyway.