Max Bowie: Market Data’s a Dirty Job, But Someone’s Got to Do It
After the recent arrival of his twins, Max argues that market data execs are the nannies of the data industry.
If I've learned anything useful since my wife gave birth to twins in February, it would be (a) always cover a baby during changings unless you want to be cleaning all manner of substances off the walls and floor, and (b) with babies, as with life, market data or with starting a business, there's going to be a lot of poop, so you'd better not only get used to it, but also learn to enjoy dealing with it.
Market data professionals are used to dealing with more than their fair share of poop, often cleaning up licensing and compliance messes unknowingly created in haste by the business side then handed off when they start to stink. So data managers often need to wear multiple hats ─ being an expert cajoler and negotiator, a quick-draw diaper changer and a diplomat with the ability to smile and coo even when surrounded by the stench of rotten data management or procurement processes.
Stinky Diapers
Indeed, some of these scenarios can land you in deep do-do. Strike a bad deal that doesn't deliver value and management will poop all over you. But if you fail to understand or honor a deal, that opens up a whole separate stinky diaper. For example, data audits should be a formality, but can become a nightmare if a firm is unclear on the meaning of the terms and policies in their license agreement. License agreements, of course, can be their own unpleasant sticky mess that one must wade through. And a simple misunderstanding of what data can be used where, by whom, or in what manner, can prove more costly than starting a college fund. Hence, the industry spends a small fortune on advice and interpretation from consultants and platform providers such as Ballintrae to ensure that it doesn't have to spend a large fortune in fines and penalties.
The newest kid on the block in this space is Axon Financial Systems, a Belfast-based start-up set up by former NYSE Technologies staff who had worked on the DART entitlements and reporting tool originally developed by Harco Technology (which was acquired by Wombat and ultimately by NYSE) and Aaron Garforth, who also served as head of the compliance and managed services team at Ballintrae. Axon's core platform, dubbed PEAR, allows users to monitor policies and to assess their exposure to any changes, compare the requirements of different exchange products using a proprietary tagging schema, and understand what datasets and licenses are most suitable to meet their needs. Used effectively, tools like these could save firms a lot of discomfort and clean-up time.
Noxious Emissions
And speaking of clean-ups and all manner of noxious emissions, some of the new datasets that data professionals are expected to manage include content beyond prices or balance sheet information, but which still impact a company's bottom line or share price. This can include the type of emissions data being collected and distributed by vendors like Carbon Market Data for firms focused on carbon trading, or for risk managers to quantify their carbon footprint, as well as for investors to identify companies with high or low carbon footprints to gain or reduce exposure to them. Or it could include ESG (environmental, social and governance) data such as that created by Zurich-based RepRisk, which is diversifying from a single database of ESG data into screening tools aimed at different user bases, such as tools to screen the risk profiles of suppliers, to identify ESG "hot spots" in portfolios, and for company directors to assess their own ESG risk against their peers.
Market data professionals are used to dealing with more than their fair share of poop, often cleaning up licensing and compliance messes unknowingly created in haste by the business side then handed off when they start to stink.
Overall Health
Much like reputational risk, a company's dirty secrets can be a major indicator of its overall health and integrity. Hence, finding and managing that data within the soiled playpen that is often market data management is likely to be an increasingly important and time-consuming task in future as these datasets become more diverse and commonly used. But as the data management burden grows, remember that an abundance of poop is a sign of a healthy system. So if you find yourself up to your elbows, consider it a positive sign.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
Symphony boosts Cloud9 voice offerings with AI
The messaging and collaboration platform builds on Cloud9’s capabilities as it embraces the AI wave in what CEO Brad Levy calls “incremental” steps.
MSCI counts the cost of bank M&A, looks ahead to custom indexes, AI
Cancellations of overlapping contracts following a bank merger put a dent in MSCI’s earnings, but management remains upbeat about the potential of recent acquisitions and new technology developments.
Nasdaq reshuffles tech divisions post-Adenza
Adenza is now fully integrated into the exchange operator’s ecosystem, bringing opportunities for new business and a fresh perspective on how fintech fits into its strategy.
This Week: HKEx's new derivatives platform; GoldenSource; Quonian-SimCorp, and more
A summary of some of the latest financial technology news.
Chris Edmonds takes the reins at ICE Fixed Income and Data Services
Edmonds is now leading ICE’s fixed income and data business as the rush to provide better data and analytics in fixed income builds.
Deutsche Börse democratizes data with Marketplace offering
Deutsche Börse Group is set to unveil its Marketplace, a one-stop data shop designed to simplify and streamline data acquisition and consumption for its clients, while also surfacing data from across the firm to its own users. Jan Stiebing and Sven…
DSB says industry is ready to meet UPI mandate ahead of deadline
The Unique Product Identifier will be required for certain OTC derivatives in the EU at the end of April, following US adoption in January.
Mapping a successful data journey: strategy, execution and sustainability
A well-planned data journey can positively impact an organization’s long-term trajectory. However, it is important to have clarity not only in the strategy but also in successful execution and sustainability for the long haul, argues data veteran Subbiah Subramanian.
Most read
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- Deutsche Börse democratizes data with Marketplace offering
- Nasdaq reshuffles tech divisions post-Adenza