Opening Cross: To Ensure Data Quality, Keep Long Leases on Short Leashes
Sell-off-and-lease-back strategies require supreme—award-winning, even—confidence in your partners.

In some cases, consumers say, these restrictions are tactics by exchanges and vendors to generate additional revenues without providing any additional value, to make up for other underperforming business areas. In other cases, exchanges say they impose fees and restrictions to make up for data usage that falls outside that which they envisaged for the data—such as firms using it to generate their own analytics or pricing, rather than using it to trade on the exchange, or where demand creates a costly burden on an exchange to run a delivery infrastructure to serve a specific client type.
For example, the Moscow Exchange has begun making streaming real-time and end-of-day data available via its website for firms and individual traders who subscribe to its data but do not necessarily reciprocate by trading on the exchange. By not having to support traditional licensing and delivery mechanisms for this growing audience, the exchange will maintain the flexibility and resources to continue developing and enhancing its data products, rather than having those resources tied up providing trading-level infrastructure to non-trading clients.
Meanwhile, others are taking the leasing concept to a whole new level. Within the last week, CME Group announced a surprise deal to offload its flagship co-location center in Aurora, Illinois to datacenter operator CyrusOne and lease back the space that it occupies. The co-lo center had been the jewel in the crown of the modern-era CME: a uniquely modern facility that had in effect forced firms to move servers out of datacenters in downtown Chicago and forced network providers to build a spur onto any network connecting Chicago to other market centers. However, CME now says it isn’t in the real estate business, likening the datacenter to old floor-trading buildings.
In a similar vein, Markit last week acquired Fitch Solutions’ credit default swap pricing business to strengthen its offering, while Fitch will license back the CDS pricing for use in its own analytics.
Hopefully all parties have concrete contracts and service-level agreements to secure the provision of what are really critical services to their respective businesses. Because while giving up control means bidding farewell to certain costs and responsibilities—while getting a big chunk of change—it also means losing control of areas where control has distinct advantages, and now relying on someone else whose priorities may not align with yours 100 percent of the time.
Tthis approach might remind you of how some US states are selling and leasing back any asset of value, from official vehicles to municipal buildings. And speaking of municipal assets, some data consumers are concerned about municipal bond data. Already a hard-to-price asset because muni bonds are so thinly traded, some fear this data will also become more expensive since—via the acquisitions of Interactive Data and Standard & Poor’s evaluated pricing business—Intercontinental Exchange has cornered a large part of that market.
CME’s datacenter deal may be a win-win, but it closed after the cutoff for the Acquisition of the Year category in this year’s Inside Market Data and Inside Reference Data Awards, voting for which is underway now. The period for nominations in the expanded call-for-entry categories is also now open, and if you’re used to being shortlisted in the awards, or are thinking about nominating yourself or a company you’ve worked with, please review the new criteria and categories carefully, as some have changed from former years. Nominating is easy, and voting is even easier, so let us know who your winners are at www.insidemarketdata.com/awards
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: https://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
Droit awarded patent, US CT plan shapes up, Chicago traders go to court, and more
The Waters Cooler: TNS expands 24x5 trading, SIX and Pictet complete a token pilot, and an Asic probe spells more trouble for ASX in this week’s news roundup.
GenAI too risky for collateral processes
The technology has been heralded as game-changing for other areas of finance, but its potential to hallucinate may disqualify it from sensitive settlement procedures.
Waters Wavelength Ep. 324: A philosophical conversation about AI
This week, Reb and Nyela discuss BNY’s digital workers, and what the use of AI in society signals for the future.
Cloud Wars: Are EU and APAC firms really pining for homegrown options?
Waters Wrap: In the wake of tariffs and regional instability, there’s chatter about non-US firms lessening their dependency on the major hyperscalers. Anthony is not buying it.
Google gifts Linux, capital raised for Canton, one less CTP bid, and more
The Waters Cooler: Banks team up for open-source AI controls, S&P injects GenAI into Capital IQ, and Goldman Sachs employees get their own AI assistant in this week’s news roundup.
Numerix strikes Hundsun deal as China pushes domestic tech
The homegrown tech initiative—‘Xinchuang’—is a new challenge for foreign vendors.
RBC’s partnership with GenAI vendor Cohere begins to bear fruit
The platform aims to help the Canadian bank achieve its lofty AI goals.
Deutsche Bank casts a cautious eye towards agentic AI
“An AI worker is something that is really buildable,” says innovation and AI head