Aite Group conducted a global survey with 67 market data professionals in the fourth quarter of 2010 and the first quarter of 2011 to determine where firms are looking to achieve more efficiency in managing the onslaught of market data and the shift from terminal trading to more automated trading strategies. The survey revealed that:
â¢ More than 60% of market data managers are evaluating changing providers in 2011
â¢ Controlling cost is both the predominant challenge and primary driver for change this year
â¢ Regulatory changes are expected to supply the biggest headache for market data managers
â¢ Less than half of all firms are currently employing cross-asset trading strategies
Data managers said their top three market data challenges are the cost and quality of market data, and ensuring their infrastructures can support growing volumes and capacity. These challenges are intensified by the increasing role of unstructured news content in trading and risk management, changing regulations, and pressure to expand geographically, especially as markets continue to fragment.
Adam HonorÃ©, research director at Aite Group, said, âInfrastructure challenges will be a persistent problem that will require constant improvement in capacity, speed and bandwidth. Going forward, data managers should actively seek outsourcing options such as managed services and turn-key feed components, and be more proactive in addressing data quality issues by ensuring management, business and technology teams understand the challenges and are supportive of these efforts.â
Robert Jeanbart, global head of SunGardâs MarketMap business unit, said, âMarket data managers need to cope with rising data volumes on existing liquidity venues and expansion in additional areas. SunGard provides a lightweight, customizable approach leveraging SaaS platforms and real-time market data usagetools that help control costs, reduce time-to-market, and overcome the infrastructure challenges of business growth and geographical expansion. Data managers will be best served by those vendors that provide multi-asset global coverage and an efficient framework to help increase data quality and capacity, and reduce the cost of duplicate data.â