Opening Cross: Market Data’s Facebook Status Would Be ‘It’s Complicated…’
As data becomes more sophisticated, data management becomes more complicated.

Speaking of complexity, let’s start with the Chicago Board Options Exchange and its Complex Order Book data: here, CBOE is doing something nice for data consumers by slashing its fees to use the data for non-professional investors and the brokers that serve them. Of course, CBOE hopes to gain as a result, through increased participation in its markets via spread trading—a simpler way to participate in the Complex Order Book, which is by definition “complex.” However, the exchange’s fees are also fairly complicated. Some are waived if you subscribe to another product. Some fees apply only to view-only terminals. I don’t mean to unfairly single out CBOE. If anything, these fees are actually fairly straightforward compared to some others.
This is why third-party specialists are so often required to interpret exchange policies, and why tools such as Ballintrae’s BERRD (Ballintrae Exchange Rules and Regulations Database) exist—to standardize explanations and implementations where no real standards exist, since competing exchanges tend not to cooperate on drafting standard policies and licensing documents, despite the efforts of groups such as FISD. And ultimately, it’s the reason for audits: if policies weren’t so complicated, no one would accidentally find themselves non-compliant—at least, so the argument goes.
Aside from contract complexity, data itself is becoming more complicated. For example, fundamental analysis provider YCharts has introduced a funds screening tool that officials say takes the complexity out of running complex screens on large amounts of data with complicated characteristics and relationships. And as data increases and becomes more sophisticated, the relationships between data also become more complicated.
And as data becomes more complex, so too does the relationship between consumers, suppliers and their data, which—again, like any relationship—requires the involvement of all participants if it is to remain healthy. No single party can be doing all the work while the others are complacent. And when parties reach an impasse—say, on contract negotiations—they all need to be prepared to compromise to meet in the middle. If the situation is not salvageable, they also need to be prepared to walk away. Too many consumers and suppliers remain in tense, loveless “marriages,” grumbling about each other, but neither prepared to make a clean break. Why? Sometimes it’s impossible to replace a service with comparable content. In fact, sometimes, it’s impossible. But either way, it can be a very complicated process to identify suitable services, let alone procure them. And frankly—especially assuming that firms are already using the most cost-effective services they can find—it can also be a costly process to find, review and implement other services, without even considering the internal cost of making everything work with the new data.
But then, that’s why firms employ data experts who are not just used to dealing with this complexity, but who thrive on seeking out the new and experimenting with alternatives. But with events such as falling oil prices and the Swiss franc uncoupling set to impact banks’ revenues, chances are that—instead of being given free rein to seek out alternatives—data managers will be told to tighten their belts even further, making it even harder to “walk away.” That’s when those experts’ relationship management skills will be in full effect. Perhaps there’ll be room in the budget for some counseling?
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 Emerging Technologies
EU banks want the cloud closer to home amid tariff wars
Fears over US executive orders have prompted new approaches to critical third-party risk 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.
Waters Wavelength Ep. 317: Bitdefender and Transilvania Quantum
This week, Bitdefender’s Adrian Coleșa and Transilvania Quantum’s Sorin Boloș join to discuss security vulnerabilities in quantum computing.
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.
Evalueserve tames GenAI to boost client’s cyber underwriting
Firm’s insurance client adopts machine learning to interrogate risk posed by hackers
Waters Wavelength Ep. 316: Finbourne Technology’s Toby Glaysher
This week, Toby Glaysher, chairman at Finbourne Technology, joins the podcast to discuss the asset servicing industry.
State Street’s interop play for FX and easing technical debt
Waters Wrap: About six years ago, State Street partnered with Interop.io to tie together its GlobalLINK suite of platforms. Anthony explores how this plays into the “reuse” mantra.
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.