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
Growing pains: Why good data and fortitude are crucial for banks’ tech projects
The IMD Wrap: Max examines recent WatersTechnology deep dives into long-term technology projects at several firms and the role data plays in those efforts.
Investing in the invisible, ING plots a tech renaissance
Voice of the CTO: Less than a year in the job, Daniele Tonella delves into ING’s global data platform, gives his thoughts on the future of Agile development, and talks about the importance of “invisible controls” for tech development.
Optiver relies on BMLL market data for quant strategy
The market-maker has built its trading business on top of BMLL’s Level 3 data. But the collaboration is young, and the pair have grand plans to make options the next quant frontier.
Bloomberg expands IBVAL; the SIPs and 24/5 trading; Broadridge’s agentic play, and more
The Waters Cooler: State Street embraces interop, Citi’s CIO outlines the XiNG risk platform, power companies explore alternative nuclear supply options to datacenters, and more.
As costs rise, buy-side CIOs urge caution on AI
Conference attendees encouraged asset managers to tread carefully when looking to deploy AI-driven solutions, citing high cost pressures.
XiNG: Inside Citi’s all-encompassing risk platform
Voice of the CTO: Citi’s chief information officer, Jon Lofthouse, explains how and why the bank has extended its enterprise-wide risk platform so that every trade in any asset class goes through it.
Demand for private markets data turns users into providers
Buy-side firms seeking standardized, user-friendly datasets are turning toward a new section of the alternatives market to get their fix—each other.
LSEG-AWS extend partnership, Deutsche Bank’s AI plans, GenAI (and regular AI) concerns, and more
The Waters Cooler: Nasdaq and MTFs bicker about data fees, Craig Donohue to take the reins at Cboe, and Clearwater closes its Beacon deal, in this week’s news roundup.