Opening Cross: Coopetition: Exposing You to a Bigger Audience, Or Just Leaving You Exposed?
Keep your friends close, and your partners closer.
For example, FactSet—which overtook Interactive Data as the third-largest vendor, according to the Burton-Taylor survey—has incorporated sentiment indicators from news sentiment analysis provider RavenPack into its workstation to meet demand from buy-side traders wanting an additional input to their investment decisions. Whereas in the past, a top-tier vendor may have built these measures in-house, the industry now thinks nothing of companies partnering where they are not in direct competition, and where it is easier to license someone else’s content than duplicate it in-house.
In another example of content cooperation, SunGard has expanded the energy data it sources from Platts to include real-time data, alerts and commentary, in part for SunGard to develop its own service for energy and commodities traders.
Of course, there are risks to this strategy of “coopetition.” The upside is that your clients get access to new datasets. The downsides are that you may be arming a competitor with the ammunition to steal away clients, and that a company can quickly become very over-exposed to one particular provider—something that FactSet officials probably remember from a dozen years ago, when the vendor began an acquisition strategy with the purchases of Lionshares, Mergerstat and JCF, having previously sourced a large part of its data from Thomson Financial, which at the time was said to be considering curtailing its third-party distribution.
And for those creating the unique content, demand is driving them in different directions: For example, social media sentiment indicators provider Social Market Analytics is expanding the delivery mechanisms by which it gets its social media-derived indicators to clients, in response to more traders wanting to incorporate its inputs into their investment decisions. As SMA chief executive Joe Gits puts it, social media as a dataset is already demonstrably moving markets, but professionals need ways to better understand how to use and manage it.
Part of making this easier is the creation of a web-based dashboard that visualizes the impact of the social data, while another part of the puzzle is—in another example of integrating third-party content—incorporating news from Seeking Alpha that provides more context about the underlying market events. And in yet another example of integration—indeed, another case that demonstrates the value of news and context alongside traditional price data—trading platform vendor PFSoft has incorporated news from UK newswire Alliance News into its Protrader trading platform to support those trading multiple asset classes beyond just equities or foreign exchange, where Alliance and Protrader have their respective origins.
Meanwhile, to support a move into the Americas markets, commodities data management and analytics provider DataGenic is having to source a new local data from a diverse range of exchanges, vendors and government bodies to support the constantly evolving needs of commodities traders—though this approach probably has more to do with the challenges of obtaining a full dataset rather than any conscious decision to spread out its sourcing approach.
That said, just as consumer firms seek to minimize their exposure to being tied in to one supplier, vendors that consolidate other companies’ data must also be mindful of the same risks—that cooperation is fine while you share a common goal, but may revert to cutthroat competition if your or your partner’s priorities change.
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 Emerging Technologies
Nasdaq reshuffles tech divisions post-Adenza
Adenza is now fully integrated into the exchange operator’s ecosystem, bringing opportunities for new business and a fresh perspective on how fintech fits into its strategy.
Liquidnet sees electronic future for gray bond trading
TP Icap’s gray market bond trading unit has more than doubled transactions in the first quarter of 2024.
Verafin launches genAI copilot for fincrime investigators
Features include document summarization and improved research tools.
Waters Wrap: Open source and storm clouds on the horizon
Regulators and politicians in America and Europe are increasingly concerned about AI—and, by extension, open-source development. Anthony says there are real reasons for concern.
Waters Wavelength Podcast: Broadridge’s Joseph Lo on GPTs
Joseph Lo, head of enterprise platforms at Broadridge, joins the podcast to discuss AI tools.
Man Group CTO eyes ‘significant impact’ for genAI across the fund
Man Group’s Gary Collier discussed the potential merits of and use cases for generative AI across the business at an event in London hosted by Bloomberg.
BNY Mellon deploys Nvidia DGX SuperPOD, identifies hundreds of AI use cases
BNY Mellon says it is the first bank to deploy Nvidia’s AI datacenter infrastructure, as it joins an increasing number of Wall Street firms that are embracing AI technologies.
This Week: Linedata acquires DreamQuark, Tradeweb, Rimes, Genesis, and more
A summary of some of the latest financial technology news.
Most read
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- Deutsche Börse democratizes data with Marketplace offering
- Waters Wavelength Podcast: Broadridge’s Joseph Lo on GPTs