Opening Cross: Eco-system Warriors: It’s All About Access
The proposition of a third-party ecosystem of content and capabilities is simple: What can you offer me in return for what I can offer you?

This issue features several content partnerships, from low-cost terminal provider Money.Net adding content from MT Newswires to its workstation, and sentiment analysis provider RavenPack integrating content from news and trade ideas provider Benzinga, to Wall Street Horizon capturing drug approval events dates from Informa subsidiary BioMedTracker.
But two stories that caught my eye were the details of Deutsche Borse’s new reporting hub, which will offer a suite of in house-developed data and reporting services to support compliance with MiFID 2, and network provider Colt’s plan to create an ecosystem of managed services, leveraging third-party developers to provide hosted applications that leverage its infrastructure and data connectivity, giving Colt a suite of services that it can offer clients, without ever having to develop any of those services itself.
When analyzing the gap between Bloomberg and Thomson Reuters and the rest of the market, industry observers often ask, how can any vendor ever hope to replicate the size and scope of those giants—especially Bloomberg, which grew almost entirely organically compared to the acquisition strategies pursued over the years by Thomson Reuters and others such as Interactive Data or Markit?
But in today’s market, you don’t need to grow your own business to that size and scope: You merely need to find a raft of vendors that perform each function that you need, and find a way to provide access to them. Smartphone providers don’t build many apps, yet anyone can access a plethora of content and capabilities from their Apple or Android devices because the dominant smartphones are a direct channel to potential customers.
And it’s those potential customers—and your ability to provide access to them—that makes third-party vendors willing to make their content available via your platform. The more clients you can provide access to, the more attractive a channel you become. Take Symphony Communication Services, the startup messaging platform backed by a consortium of Wall Street firms led by Goldman Sachs, which has already attracted Selerity, McGraw-Hill Financial and Dow Jones to its ecosystem of third-party content providers. For them, it’s the prospect of gaining access to potential paying customers at Symphony’s backers and clients—which numbered 45,000 in November, according to chief executive David Gurle, who said 40 percent of these are at buy-side firms.
If you could put your products in front of that many potential clients so easily, wouldn’t you? And if you had that many clients and wanted to protect that base by making your platform more “sticky” by adding access to content and tools that you can’t or won’t build yourself, wouldn’t you also do that?
For now, the app store or ecosystem model seems the way to go if you want to have the capabilities of a major vendor without the cost and time required to assemble them yourself. However, with so few barriers to entry, how do you differentiate yourself from everyone else offering access to the same third parties on their own app store? That’s where your USP comes in. Is your proprietary content or service enough of a draw that people can’t afford to leave your application, and need to consume other content through it, rather than exiting it to access that content via other vendors? Let’s not forget that Bloomberg and Markit both started out serving niche markets but proved so invaluable that they were able to grow or buy their way into the mainstream while others found themselves mired in less attractive niches or forever battling on price with full-service vendors.
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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
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. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
Microsoft exec: ‘Generative AI is completely passé. This is the year of agentic AI’
Microsoft’s Symon Garfield said that AI advancements are prompting financial services firms to change their approach to integrating AI-powered solutions.
Inside the company that helped build China’s equity options market
Fintech firm Bachelier Technology on the challenges of creating a trading platform for China’s unique OTC derivatives market.
Fitch claims 20% developer productivity boost using AWS GenAI tools
The vendors have expanded an existing deal to include new Amazon tools that have helped Fitch modernize its infrastructure and applications.
Waters Wavelength Ep. 308: Arta Finance’s Caesar Sengupta
Caesar, who previously spent 15 years at Google, joins to discuss Arta’s goal of putting a private banker in everyone’s pockets.
Terry Duffy on CME’s cloud future, takeover targets, and ... candy
CME CEO Terry Duffy explains the relatively narrow strategy that the derivatives exchange has taken under his leadership, especially compared to its peers.
Waters Wavelength Ep. 307: The shrinking OMS landscape
This week, Tony and Nyela discuss FactSet’s recent acquisition of LiquidityBook and what it could signal for trading technology.
Banks urged to track vendor AI use, before it’s too late
Veteran third-party risk manager says contract terms and exit plans are crucial safeguards.
Market data woes, new and improved partnerships, acquisitions, and more
The Waters Cooler: BNY and OpenAI hold hands, FactSet partners with Interop.io, and trading technology gets more complicated in this week’s news round-up.