• inside_market_data
  • inside_reference_data
  • buy_side_technology
  • sell_side_technology
michael-shashoua-waters
Michael Shashoua, editor, Inside Reference Data
  • Send
  • Comment
  • Send to Kindle

Firms budgeting for data management operations needs may also find that they "get what they pay for" in the current climate.

In Inside Reference Data’s most recent webcast, Building a Data Management Foundation, 36% of 92 attendees who responded to a question about how much their firms planned to spend on new data management initiatives said they planned to spend less than $1 million, and another 26% said they plan to spend less than $5 million. This is surprising, considering responses to another question in the webcast concerning readiness for the legal entity identifier (LEI) implementation, where less than half of those who responded had made some changes or extensive changes to prepare.

The adage “you get what you pay for” comes to mind again, as I wrote in the Editor’s Letter of our latest special report on corporate actions. And that maxim seems to be tied to data operations quite a lot lately—it’s also turned up in a recent issue of Bloomberg Businessweek, in coverage of potential cuts to the US federal government’s budget for its own essential economic data, including census and labor statistics.

It’s not the only place I’ve heard the phrase either. My wife loves to say it when I habitually reach for less expensive options when clothes shopping, or picking up household goods, or getting some new electronic gear. Inevitably the frayed ties, broken electric toothbrushes and cheaper MP3 players end up in the garbage and I go back to the malls or Amazon a little bit wiser.

Webcast poll results aside, there is some light at the end of the cost-cutting tunnel. As Sybase’s Neil McGovern noted in the program, some data initiatives may be getting their funding from project requests made by risk management or trading departments at firms, rather than designated data management budgeting.

Ironically, data professionals are probably the most aware of the need for greater spending. The LEI responses, not to mention the ongoing implementation saga itself, show they at least know they have to look at or reach decisions on some data management changes. And in another poll question, respondents largely said they expected to see benefits from LEI between now and five years from now at most. The question this raises: will they want to pay for what they will get?

Next week, London reporter Nicholas Hamilton will fill in with an Editor's View while I am on vacation.

  • Send
  • Comment
  • Send to Kindle

More from Inside Reference Data

Sign-up for WatersTechnology email newsletters

Register for regular alerts to receive up-to-date news directly into your inbox

Related Articles

Latest Media

Events

Visitor comments Add your comment

  

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions Your comment will be moderated before publication

Submit your comment

Winner's Announced: Inside Reference Data Awards 2014

View the winners...

The winners of the 12th annual Inside Market Data Awards 2014 and Inside Reference Data Awards 2014 were announced in New York on May 21, recognizing industry excellence within market data and reference data. To view the winners across the 31 categories click here.

imd-ird-awards-logo-2014

Training

Latest Whitepapers

waters-equinix-whitepaper-may2014

Tackling Teething Troubles: Examining the Current State of the OTC Derivatives Market

The over-the-counter (OTC) derivatives market is in the midst of a global regulatory restructure. Authorities in Europe, Asia and the US are currently...

eagle-whitepaper-jan2014

A data-centric approach to portfolio management

A fast, flexible and reliable investment decision-making process must be based on access to accurate and consistent information throughout an organization....