The Buy Side as Big Data Laggards
![anthony-malakian-waters anthony-malakian-waters](/sites/default/files/styles/landscape_750_463/public/import/IMG/216/142216/anthony-malakian-waters.jpg.webp?h=373a525f&itok=zNeqXFEa)
Big Data seems to be more of a sell-side issue than a buy-side one. Over the last year, the WatersTechnology brands have produced numerous webcasts, special reports and conferences in an attempt to dive deep into Big Data.
The most recent was Tuesday's Big Data Online Summit—something new for us—a virtual conference with panels, video presentations, case studies, and virtual booths where people were able to chat online with representatives and download information about the exhibiting company.
At the online event, I noticed most of the insight and innovative strategies to tackle Big Data coming from large tier-one investment banks, as well as vendors that cater more to the sell side. This may be due in part to selection bias—we produce these materials and conferences—but I talk regularly with a number of hedge funds and asset managers, and this topic is rarely on the tips of their tongues.
In a virtual chat room I asked someone from Barclays Capital if he noticed the same thing. He said he had, and added that the sell side is going to be “more creative in how they use recent developments in tech and situations." The buy side, it seems, has all but given up trying to deal with the deluge of news coming across their desks ... and that was before Twitter exploded three years ago.
At the same time, sell-side firms have been struggling to come up with new ways to find alpha as equity trading volumes fall, and direct market access cuts into commissions. So it's up to the sell side to lead the charge on this. And the buy side has been incentivizing sell-side firms to innovate by "dangling future commissions” in front of them, the Barclays professional said.
So my question is this: Is it worth it for the buy side to step up its Big Data innovation? After all, a firm that can figure out how to successfully mine and analyze a massive, unstructured dataset could gain a competitive advantage when it comes to communications with investors and in identifying trends and sentiments around which to build a trading strategy. On the other hand, is it simply not worth the expense and resources, considering that buy-side firms are already running on skeleton crews when it comes to IT?
If you have an opinion on this, send me an email at anthony.malakian@incisivemedia.com or call me at +1 646-490-3973.
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
This Week: MSCI, Tradeweb, FactSet, LTX, MarketAxess, TS Imagine, and more
A summary of the latest financial technology news.
Regulators urged to promote cyber security investment
Public interest in stopping cyber attacks that could trigger bank runs, says Bundesbank researcher
The IMD Wrap: Will banks spend more on AI than on market data?
As spend on generative AI tools exceeds previous expectations, Max showcases one new tool harnessing AI to help risk and portfolio managers better understand data about their investments—while leaving them always in control of any resulting decisions.
As legal letters fly, Cusip licensing debate rolls on
Cusip Global Services’ licensing agreements with third-party data providers sit at the heart of the antitrust case against itself and three others.
GoldenSource joins Snowflake’s native app ecosystem with Omni
The enterprise data management platform is teaming up with the data cloud provider to streamline data integration for the buy side, adding to its expanding library of native applications.
Waters Wrap: When looking for tech & data jobs, be curious
Senior executives across the industry tell Anthony that while having the right technical skills as a programmer or data specialist is important, the most desired qualities in new hires are curiosity and the ability to ask good questions.
The evolution of Genesis: vendor charts future course with latest release
The low-code provider is rolling out a new pricing model, sandbox offering, and tools to help get the product in the hands of end-users more easily.
Leading the charge: Nitin Tandon spearheads Vanguard’s tech ambitions
The asset manager’s CIO is drawing on his past experiences to propel the 49-year-old firm into the future.
Most read
- Big questions remain over Dora’s critical third parties
- The IMD Wrap: Will banks spend more on AI than on market data?
- Deutsche Bank works on standardized protocols for asset tokenization