Market Data Subscriptions - How to optimize them?
Market data managers are under pressure from a variety of directions. Lines of business demand access to more and a wider variety of financial information services than ever before.
This pressure for more information comes against the backdrop of the need to cut the overall cost of data services in what continues to be a margin-conscious environment for the financial services industry as a whole.
As a result, it’s imperative for firms to understand what information services are being accessed and used across their businesses so they can manage subscription costs more closely. Complicating matters is the fact that many new data services are not delivered via traditional desktop applications. Instead, they are provided over the web, making access and usage challenging to track through existing methods.
Despite this, two-thirds of financial services firms polled in a recent A-Team Group survey on market data usage do not believe they have enough transparency into the actual consumption of the information services they pay for. As the old adage goes, ‘You can’t manage what you can’t measure’. And so this lack of transparency is making the job of managing market data and information services a very real challenge.
Firms have been trying to get to grips with their use of market data and information through a variety of approaches. In fact, nearly 79% of firms in the survey say they do have a system in place for tracking usage. But given how many firms feel they still do not have enough transparency, there is clearly a disconnect. What they have so far is not working.
So what can market data managers do to grasp control of data usage, gain transparency, ensure they are in compliance with vendor policies, and ensure they are managing costs as effectively as possible?
This article looks at the current approach and outlines steps you can take to address information service usage tracking, based on the findings of a survey of senior-level market data managers across the US (43%) and UK (57%) at sell side (57%) and buy side firms (43%), conducted by A-Team Group.
Use the table of contents below to navigate through the article:
- Executive Summary
- Market Data Usage Monitoring: Current Landscape
- The Challenge of ‘Flying Blind’
- Web-Based Services: Adding to the Challenge
- How Dealing with Growing Numbers of Suppliers Creates Complexity
- Market Data Subscriptions and Usage Monitoring: A New Approach
- Key Considerations in Setting a Usage Tracking Strategy
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