Asia-Pacific Financial Information Conference: Panel Debates Direct Connects, Agreements
Firms are increasingly working directly with data sources—especially as those sources roll out new feeds that require new usage policies—but sometimes still find vendors playing important roles around billing and administration, according to an FISD panel at last week’s conference.
“Latency is one of the most important reasons for [going direct to source]. We are bringing our trading system latency down from over 100 milliseconds to single-digit milliseconds—and with this, we think we will get more direct connections,” said Daniel Poon, vice president of market data at Hong Kong Exchanges and Clearing.
“In the interdealer space, it may be latency-effective to get a direct feed from a broker, it might be easier to use, negotiate and control, and you can get a high degree of granularity with a direct relationship. It may also enable cost savings… for participants who only look at broker data, because you can use a lower-cost technology and remove [premium] terminals,” said Andrew Miller, CEO of Arcontech.
“If you are just looking at specific data, such as broker data, then yes, it makes sense to go direct,” said Jutta Werner, head of content acquisition for Asia at Thomson Reuters. However, she added that this mostly applies to high-frequency traders seeking access to a small group of highly liquid markets, of which there are few in Asia, and that the cost of going direct can be high, whereas vendors offer lower TCO and faster time to market. In addition, some exchanges are instituting direct policy agreements when rolling out new policies, such as non-display fees, she said.
For example, HKEx plans to launch a non-display policy, Poon said, and is trying to make the policy simple since other exchanges have differing policies.
“We get involved in… looking at hundreds of data sources and trying to resolve issues around billing,” said Ben Mendoza, chief executive of MDSL. “The old model of just declaring numbers of users doesn’t make sense anymore.”
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
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.
Hub to lay off 20% of staff, sources say
Hub’s CEO says this is simply a case of a startup trying to stay nimble and efficient; others say it points to deeper issues.
Most read
- Sell-Side Technology Awards 2024: All the winners
- Sell-Side Technology Awards 2024: Best sell-side front-office platform—Bloomberg
- Deutsche Börse democratizes data with Marketplace offering