Asia-Pacific Financial Information Conference: Asia-Pacific Firms Target Data Cost Controls
Though financial markets in Asia-Pacific have outperformed other geographies in recent years, data managers in the region are increasingly turning their attention to reducing the cost of the data services their firms consume, according to panelists at last week’s Asia-Pacific Financial Information Conference.
“The biggest change we’ve seen in the last few years has gone from growing revenue to maintaining our expenses line,” said Jeremy Green, global head of market data at Standard Chartered. “Every year we look at budgets, focus on expenses… and find that if we can present context around how people are using data, we can usually reduce costs by 5 to 10 percent without doing anything major.”
Mark Bands, head of global customer reference data at ANZ Institutional Bank, agreed that simple steps can yield results. “When you set up an organization within a firm to monitor usage, it’s amazing what you can find by looking at what data you have, what you need, and what you can do without,” he said.
Green added that Standard Chartered has achieved some degree of success by marrying its supply management and demand management functions, providing a clear picture of where the firm has growth and where it can reduce services—but that however a firm organizes its data function, a key element is to have a group-wide view of all contracts supporting its data needs.
However, a lack of competition among niche regional vendors can make it hard to substitute services for cheaper alternatives, said Miguel Ortega, market data engineer at Deutsche Securities Japan. “Asia is a little different from the rest of the world, because we have different needs. There are some local vendors with data that only they have—so it is difficult to look elsewhere to meet our clients’ needs,” he said.
An alternative to focusing only on reducing spend is to lobby for more budget by demonstrating where cuts cost money, such as charges as a result of incorrect settlement instructions. “Yes, we’re being asked to do more with less budget, but part of our job is to point out the costs of bad data,” Bands said.
However, any cost control efforts must be ongoing and sustainable, such as monitoring usage, reviewing services, and having end-users self-certify their usage, and should include evaluating what additional value vendors are willing to provide to keep costs low, Ortega 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.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
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. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
Chris Edmonds takes the reins at ICE Fixed Income and Data Services
Edmonds is now leading ICE’s fixed income and data business as the rush to provide better data and analytics in fixed income builds.
Deutsche Börse democratizes data with Marketplace offering
Deutsche Börse Group is set to unveil its Marketplace, a one-stop data shop designed to simplify and streamline data acquisition and consumption for its clients, while also surfacing data from across the firm to its own users. Jan Stiebing and Sven…
DSB says industry is ready to meet UPI mandate ahead of deadline
The Unique Product Identifier will be required for certain OTC derivatives in the EU at the end of April, following US adoption in January.
Mapping a successful data journey: strategy, execution and sustainability
A well-planned data journey can positively impact an organization’s long-term trajectory. However, it is important to have clarity not only in the strategy but also in successful execution and sustainability for the long haul, argues data veteran Subbiah Subramanian.
The IMD Wrap: The growing data catalogue space
With their potential to manage costs and surface strategic datasets, it’s no wonder Max gets excited about data catalogs. This week, he takes a look at a new startup entering the space.
LSEG to sunset Redi EMS in favor of Tora
Sources say competitors will look to seize on the decision to win over Redi’s sizeable US client base.
The IMD Wrap: Taking stock of inventory management
With market data and associated costs typically representing a firm’s third-largest expense, there’s a lot of incentive to manage data and its usage more efficiently. Max flings open his fridge to illustrate what’s new in this space.
Most read
- Deutsche Börse democratizes data with Marketplace offering
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- Sell-Side Technology Awards 2024: All the winners