screen consultants best practice market data management 2010
DESCRIPTION
An overview of a Best Practice Approach for Market Data Managers at Financial InstitutionsTRANSCRIPT
PREPARING
MARKET DATA MANAGEMENT MARKET DATA MANAGEMENT
FOR 2010 AND BEYOND
A STRATEGIC IMPERATIVE
© Screen Consultants 2010
Executive summary
In order to improve your Market & Reference Data Strategy, you need to understand (“top-down”)…
1. Your business
2. Your business’ goals and drivers2. Your business’ goals and drivers
3. Your current market data organization
4. The data classes, end-user applications and contracts/T&C’s that can be subjected to (short-term) review
A better understanding of each of these will allow you to determine what your strategy should be and how to execute it.
© Screen Consultants 2010
YOUR BUSINESS
YOUR EXPERIENCE
© Screen Consultants 2010
Your business
• Make sure you understand…– How your business users make money, and
– How dependent they are on the availability and functionality of the
current and future systems
• Will your business spend money on• Will your business spend money on– People?
– Hardware & Software solutions?
– Content?
provided the right business case is made?
© Screen Consultants 2010
GOALS AND BUSINESS DRIVERS
OUR EXPERIENCE
© Screen Consultants 2010
Business driversScreen’s Best Practice experiences
• Continuous improvement of operational excellence in
Market Data Management is required to maintain a
competitive advantage in today’s markets
• Compliance (with legislators, regulators, exchanges and
vendors) requires a higher level of transparency and vendors) requires a higher level of transparency and
traceability of information
• Ongoing cost pressure forces the implementation of
further automation and the realization of economies of
scale
• External specialist resources, insights and expertise are
useful to initiate and execute the necessary change
management programs© Screen Consultants 2010
End user firms’ strategic objectives
Key objectives for market data management:
• More than half need to pursue an overall cost
reduction
• About a quarter are planning or are engaged in
Source: Streambase market data review 2009 amongst 300 global Buy and Sell side firms
• About a quarter are planning or are engaged in
improved data cleansing
• A quarter are looking at more cost-effective
data storage options
© Screen Consultants 2010
End user firms’ stated plans
• One third of the respondents want to
eliminate redundant or duplicate data services
• Almost one third wil reduce/have started to
reduce the number of data terminalsreduce the number of data terminals
• A quarter of respondents are reviewing
staffing; analysts, management, overhead
Source: Streambase market data review 2009 amongst 300 global Buy and Sell side firms
© Screen Consultants 2010
A Paradox
End user firms want to reduce spend…….. but major vendors
succeed in growing revenues
Do you recognize this situation in your firm?
Source: IMD year book and Burton Taylor
2007: 23 billion usd 2008: 25 billion usd
© Screen Consultants 2010
YOUR MARKET DATA ORGANISATION
SHARED EXPERIENCE
© Screen Consultants 2010
Your Market Data Management Organization
• How are you organized, both locally and globally? – Centralized or hub(s) and spokes?
– IT, sourcing and admin under one roof, or separate?
• Do you have a good understanding of – The people skill sets present in your group?
– The IT solutions and technologies available to you?
• How good are your – Management Information Systems
– management accounts
– contract management databases?
• What operational, tactical and strategic initiatives were taken previously?
• And… How well sponsored are you?
© Screen Consultants 2010
DATA, APPLICATIONS AND CONTRACTS
POTENTIAL AREAS FOR REVIEW
© Screen Consultants 2010
Identify the areas for review
• Data– Relevance i.r.t. purpose
– Cost of Timeliness
– Duplication
• End-user applications– Relevance i.r.t. value-add– Relevance i.r.t. value-add
– Duplication
– TCO
• Contracts– Coverage
– Duplication
– T&C’s
© Screen Consultants 2010
EXPERT HELP
SCREEN CONSULTANTS
© Screen Consultants 2010
Screen group of companiesRelevant Company Characteristics
• Founded in 1990
• Partners & Consultants: Investment Banking, Investment Management and/or Industry vendor background
• Highly specialized and focused product & service • Highly specialized and focused product & service offering, with own Research & Development center
• Global network and international experience
• More than 300 clients and 500 assignments successfully completed, world-wide
• Vendor independent, privately owned
• Member of
• Track record for reducing market data spend
© Screen Consultants 2010
OFFICES
The Netherlands
Head Office
Switzerland
Sweden
France
New York
Stockholm
HQ The Netherlands
Paris
Athens
ZurichBarcelona
Tunis
London
Hong Kong
TokyoFrankfurt
Screen group of companiesLocations
France
Tunisia
Market Data Admin
Outsourcing Center
AGENTS & PARTNERS
USA
In progress
Japan
Intersoftkk
Hong Kong & Singapore
Market Data Consultants Ltd
United Kingdom
Spearhead and Partners Ltd
Johannesburg
Red: Screen subsidiaries
Blue: Screen representation
Sydney
Australia
Screen / Brabus
SpainMedySIF
Greece
F-Solutions
Germany
IBX
© Screen Consultants 2010
Screen group of companiesReference selection
© Screen Consultants 2010
MARKET DATA MANAGEMENT
FOR 2010 AND BEYOND
Screen ConsultantsScreen Consultants
www.screenconsultants.com
Evert-Jan ten Brundel
UK: 07787-128845
Europe: 0031 6 575 36948
© Screen Consultants 2010