An Unfinished Symphony, Nearly Complete
Now, about that DFS probe ...
The symphony, as a form of musical composition, was once a fairly straightforward — even fairly rigid — exercise.
Officially, Mozart churned out 41 of them (though probably more). It wasn't until the end of the nineteenth century when modern composers like Gustav Mahler got their hands on the thing that it really became a massive production and labor of love. Certain exceptions — Beethoven, Brahms — generally prove the rule.
Lately, we've seen a similar labor of love, years in the making, finally coming to life in the fintech world — with the Goldman Sachs-backed messaging provider Symphony Communications Services set to go live in a couple weeks, as my colleague Anthony Malakian detailed this week.
Our friends at IMD have covered this space for years. When I asked their deputy editor Faye Kilburn what the biggest issues are with Bloomberg — the dominant incumbent, by far — and its offering, she noted cost above all else: as much as $3,000 dollars annually per terminal just to chat, which adds up for larger managers, and really does for investment banks with thousands of users.
CEO David Gurle at Symphony echoed her argument, colorfully explaining that Bloomberg's approach to the market is akin to going to a Michelin-starred French restaurant with a fixed menu, when what most people really want is a cheaper, unbundled 'a la carte' option. After a while, even haute cuisine grows old.
This is a space where everything has to go right just for a new entrant to have a chance. If you'll indulge the metaphor one more time, a symphony can be perfectly composed, but audiences still have to hear it for it to be influential.
By all accounts, Symphony is also well ahead in its design, as well — which looks and feels more like Twitter or Whatsapp than anything else currently available.
In fact, when Anthony was finished visiting Symphony in One World Trade and testing out its wares, he opined that our publishing house should be using it, too.
Salieri Appears ...
So it's a measure of just how dominant Bloomberg is — in chat, and for that matter, everything else — that when the NYSDFS state regulator began an investigation of Symphony yesterday, all of us in the newsroom half-kiddingly questioned the timing just a little bit.
The DFS — which is now living life without its erstwhile crusader Benjamin Lawsky — is looking into Symphony's technology, and specifically the potential ability of user firms to erase chat records from mandated communications archives.
This messaging data, of course, has proven crucial to the endless stream of investigations and ten-figure fines authorities have brought against investment banks in recent years, allowing regulators to get to the bottom of several scandals — Libor fixing being the most obvious among them.
To that extent, it's completely reasonable that they should be poking around and making sure Symphony isn't actually mis-designed.
What I would hate to see, however, is this new development somehow tanking the product completely before it's even off the ground. And we shouldn't pretend that won't or couldn't happen.
As Faye pointed out, former upstart Markit Collaboration Services — before being wound down and bought by Symphony — was already dying of natural technology causes: insufficient uptake.
And let's not forget the irony of why Goldman and its 13 partners began developing Symphony to begin with ... because Bloomberg was discovered (and only very lightly punished for) using chat information to develop news stories and reap other advantages of its own without asking.
Clearly, chat is a space where everything has to go right just for a new entrant to have a chance. Indulging the metaphor one more time: a symphony can be perfectly composed, but audiences still have to hear it for it to be in any way influential — no less profitable.
Hopefully we get to discover what this one can do; it's certainly been long enough in the making.
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
BMO’s cloud migration strategy eases AI adoption
The Canadian bank is embracing a more digital future as its cloud strategy makes gains and it looks to both traditional machine learning and generative AI for further augmentation.
Waters Wrap: GenAI and rising tides
As banks, asset managers, and vendors ratchet up generative AI experiments and rollouts, Anthony explains why collaboration between business and tech teams is crucial.
Ice moves to meet demand for greater cloud, AI capabilities
The exchange also outlined competitive advantages behind managing its data and cloud strategy internally during its Q1 earnings call on Thursday.
FactSet looks to build on portfolio commentary with AI
Its new solution will allow users to write attribution summaries more quickly and adds to its goal of further accelerating discoverability, automation, and innovation.
How Ally found the key to GenAI at the bottom of a teacup
Risk-and-tech chemistry—plus Microsoft’s flexibility—has seen the US lender leap from experiments to execution.
The IMD Wrap: Beginning of the end for data audits?
This week, there’s exciting news for data bean-counters in the form of a partnership between two vendors that could change the way we view and track data usage and audits.
S&P debuts Spark Assist genAI copilot, draws up ‘Blueprints’ of combined datasets
S&P’s Kensho subsidiary has rolled out new emerging tech products leveraging AI to explore and combine the vendor’s wealth of datasets to solve common use cases.
Most read
- Northern Trust building internal cloud data ‘marketplace’
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- Northern Trust: Improving transparency across the asset servicing market