Opening Cross: One Market Data, There’s Only One Market Data

The headline isn't a plug for tick data management vendor OneMarketData, but rather a reference to the World Cup. And since we're in a football frenzy, allow me to compare some of the key challenges that face footballers and data professionals alike.

First, everyone needs a good goalkeeper: someone who can take everything you throw at them in their stride and never drops the ball. Just as a goalie's skill can determine the outcome of a game, the decisions and implementations taken by today's market data manager can have a huge impact on a firm's spend-such as ensuring compliance with exchange policies and identifying cheaper products where available, much like the services now being offered by consultancy Euro Market Data (see story, page 5) - as well as its ability to make money, when it comes to finding the best and fastest products available.

And every goalie needs good defenders to support him, and who can be at the halfway line or in the penalty box on-demand - much like cloud-based data vendor Xignite is supporting on-demand market data for Nasdaq, to enable the exchange to respond to new requirements from its clients (see story, page 8).

But, as they say, sometimes the best defense is a good offense. For example, Canadian exchange group TMX has come under pressure in recent years from new alternative trading systems battling for share in a fragmenting Canadian equities market. In response, TMX has revamped its trading platform, building a system able to compete with the best in the world on speed, and is now working on an equally fast datafeed designed for high-frequency traders co-located in the exchange's new hosting facility (see story, page 1). And by providing connectivity to the facilities that host other ATS matching engines, TMX hopes to provide a one-stop shop for clients of all shapes and sizes.

But anyone looking to win market share must first win the ball, either by an interception or by a deft tackle, which the new Gissing Technology is attempting on data platform and terminal vendors by providing an interface that allows users to aggregate data from disparate platforms into their choice of display or application (see story, page 1). But with some obvious similarities to Gissing Software, acquired by Thomson Reuters over two years ago (which says it is "looking into" the new venture), will Thomson Reuters cry foul?

Then, there's the striker-the star player or top trader, who needs to assess everything around him and respond quickly if he is to score. Compare this to the International Securities Exchange's plans to develop a hosted tick database with Hanweck Associates, allowing traders to more efficiently back-test and refine their trading strategies (see story, page 1), or Acquire Media's "Edge" value that predicts price movements based on past activity (see story, page 7). With the ability to analyze and react to information and understand how the opposing team - or traders - will respond, the striker can go for goal, providing that his data staff have passed him a ball he can take advantage of.

Finally, there's the referee. His parentage may well be unclear, but he enacts the rules and must be obeyed. And in the financial markets and world of market data, the "referees" that set the regulatory agenda are expected to be a driving force behind change in the coming year, while those that govern areas such as compliance or exchange auditing often take a dim view of foul play - and both kinds are keen on penalties. So pay attention-in this world, those yellow and red cards can prove expensive. Now, play on!