by Angela Guess
A recent article takes a look at the evolving consumption, production, and regulation of financial market data and offers advice on how to manage all of the above. The article begins, “In 2010, global spending on market data infrastructure grew to $7.8 billion according to estimates by Aite Group. Infrastructure, along with market data, is at the heart of any financial firm’s business strategy. Added demands like anticipated regulation on pre-trade risk controls and increasing fragmentation in the markets will only increase the pressure to spend.
Adam Honoré, research director of Aite Group, stated, “There is a whole market for next generation and existing firms to try new things without major infrastructure investments.” The article adds, “To meet the data storage requirements expected by the Fed, leveraging the cloud or service provider activities can be advantageous in lieu of building infrastructure in-house, he says. The cloud is already attracting attention among providers as demonstrated by the recent NASDAQ Data-on-Demand offering.”
It continues, “As data evolves, firms are bolting on to their legacy infrastructure and using, for instance, data fields that aren’t really matched for the product they’re trying to put into that. ‘It’s like square pegs and round holes,’ he says.”