Key Platform 8 Steps to Choosing the Right Market Data Inventory Platform Provider Functionality to Consider
Step 1: If you don’t already use one, research and implement a market data inventory platform
The benefits are clear, from providing transparency into all your costs, but also being able to control those costs, identify redundant services and save significant time and resource from what was a previously manually intensive process. If you don’t have a modern inventory platform, you are missing out on the opportunity to simplify the process and reduce costs significantly.
Step 2: Consider the key functionality offered, in particular the reporting and analytics capabilities
Review the list of above key functionality, but also ensure you select a platform with a strong reporting capability – the number 1 capability according to 92% of respondents, and also the number 1 issue with their existing platforms. Considerations such as the flexibility and speed of access to the data you need, the ability to create custom ad-hoc reports and the ability to handle specific detailed feeds such as the Thomson Reuters DACS report or part month billing from Bloomberg, are all essential to ensuring success. Tied to this is the ability to leverage sophisticated analytics and dashboards to slice and dice your data.
Step 3: Consider the capabilities of your new provider
As well as considering the functionality, capabilities and ease of use of the platform itself, consider the responsiveness of service, the level of R&D into the product, and the range of services from system, consultancy and managed services, that your future provider can offer.
Step 4: Look for a well-established web-based platform
Look at how well-established the web-based platform is and avoid those running on legacy platforms. Or consider the pros and cons of a managed service option.
Step 5: How focused is your provider on your core platform?
Ensure your provider’s focus is not diluted across multiple products at the expense of your core platform.
Step 6: If you are considering migrating, ensure you negotiate favorable terms and support from your new provider for switching
If you’re considering migrating, raise it with your chosen alternate provider and see if you can negotiate favorable terms for switching. Be sure that any provider you switch to will manage the migration of content for you and provide training to get you and your team up to speed quickly.
Step 7: How strong is the client engagement and user community?
Does your provider host regular user meetings where you can get together with other users and discuss best practices, resolve issues and have an impact on future development? Does your provider provide an online community for collaboration and feedback? Do they engage and collaborate with clients on their product roadmap and enhancement plans?
Step 8: Consider if you have broader needs beyond tracking market data
Can you track other expenses and services beyond market data with your platform? If you have more than market data under your remit, or if you can work more strategically across departments, you should ensure your platform – as a single consolidated platform – can handle additional expense types, such as research, software, publication subscriptions and more.
Ready to choose a Market Data Inventory Platform? We think you are!