Opening Cross: Forget ‘Keep it Simple, Stupid.’ Think KIDD—’Keep it Diversified, Dummy"
For example, Bureau van Dijk Electronic Publishing has expanded the breadth and depth of its fundamental data on listed companies around the globe. In some of these cases, BvD was expanding existing data, and in some cases is sourcing the data itself, while in others—for example, in Africa and Central and South America, where it’s harder to obtain reliable data—it is using niche local providers where partners are a necessity
Another example of someone using partnerships to diversify its content is German data vendor VWD, which is adding US Treasury data from Tullett Prebon Information to its Market Manager terminal, in response to demand from European clients for more US data. The relationship with TPI—which includes prior deals for the broker’s data—works out well for both companies: not only does VWD diversify its content lineup with data that might be more expensive and time-consuming to source elsewhere, but TPI gains revenues from the VWD clients that subscribe to the data. And when VWD signs content deals with other partners that include TPI’s data—such as with German software provider Bellin—both vendors win, and TPI gets to diversify its business not just to partners and their clients, but also its partners’ partners.
Similarly, S&P Capital IQ is pursuing a “rapid expansion” of its research and estimates coverage in Latin America and Asia Pacific, using local staff to build out its network of contributing broker-dealers and third parties, which currently numbers 1,400 sources in 120 countries.
And diversification is a big factor behind the London Stock Exchange’s proposed acquisition of US index provider Russell to merge with its own FTSE index business, to give the LSE and FTSE a bigger foothold in the US market, and specifically in the exchange-traded fund marketplace, at a time when the providers expect the passively-managed investment sector to grow at a compound annual growth rate of 18 percent between now and 2020.
LSE’s plans to consolidate the technology platforms that FTSE and Russell use to calculate and distribute their index data will doubtless please both company execs and shareholders, as a result of reducing three sets of platform costs into one. However, LSE’s plans to “migrate [Russell] to a fee policy and a commercial approach closer to FTSE” may not sit so well with some of the Russell management that LSE has put specific provisions in place to retain. Like some of its rivals, FTSE has gained a reputation—rightly or wrongly—for aggressively chasing revenue via commercial policies. And it shows: For the most recent financial year, FTSE’s index revenues were $296 million, compared to Russell’s $162 million, despite FTSE having $1.2 trillion fewer assets benchmarked to its indexes.
And as commercial policies become more convoluted and complex, and the demands of the data industry become more diversified, so must the expertise of the professionals that deal with market data. This is proving especially true in marketplaces outside the main global financial centers, where professionals don’t get the same level of exposure to broader experiences beyond highly localized issues. Hence, as the latest body to adopt industry association FISD’s Financial Information Associate certification, the Johannesburg Stock Exchange is not only making its own data staff take the exam, but is also promoting it to its clients and other regional exchanges, blazing a trail for others to pursue a more diversified approach to data management.
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
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.
Fighting FAIRR: Inside the bill aiming to keep AI and algos honest
The Financial Artificial Intelligence Risk Reduction Act seeks to fix a market abuse loophole by declaring that AI algorithms do not have brains.
Waters Wrap: The rise of AI washing… and regulation washing?
The SEC recently levied fines against two investment advisors over “AI washing”. Anthony takes issue with the announcement.
This Week: Brown Brothers Harriman, BNY Mellon/Nvidia, Cboe, Eurex, and more
A summary of the latest financial technology news.
This Week: SS&C unveils T+1 preparedness scorecard; S&P/DTCC; SmartStream & more
A summary of the latest financial technology news.
The bank quant who wants to stop genAI hallucinating
Former Wells Fargo model risk chief Agus Sudjianto thinks he has found a way to validate large language models.
Prepare now for the inevitable: T+1 isn’t just a US challenge
The DTCC’s Val Wotton believes that firms around the globe should view North America’s move to T+1 as an opportunity—because it’s inevitable.
Man Group’s proprietary data platform is a timesaver for quants
The investment firm’s head of data delves into its alt data strategy and use of AI tools to boost quant efficiency.
Most read
- Women in Technology & Data Awards 2024: All the winners and why they won
- Witad Awards 2024: Above and beyond award (vendor)—Susan Bennett, Tradeweb
- Fighting FAIRR: Inside the bill aiming to keep AI and algos honest