Tim Lind is Managing Director of DTCC Data Services.
What are your expectations for 2023?
In 2023, we expect the demand for alternative data to continue to rise, particularly if volatile market conditions persist. Firms across the financial services sector will continue to seek data that will help them to comply with increasingly complex regulatory reporting requirements, gain new insights to allocate capital more efficiently, and discover new investment opportunities in a challenging market. Specifically, we anticipate growing interest from buy-side firms who will rely increasingly on new sources of market data to analyze market trends and inform front-office decisions.
What were the key theme(s) for your business in 2022?
In 2022, DTCC launched Treasury Kinetics, a service that provides access to critical U.S. treasury transaction data, delivering new insights and increasing transparency into the repo market. Since the launch of the Kinetics portfolio of products, we have focused on expanding the service into new asset classes including ETFs as well as enhancing our existing money market, CDS, and Equity product offerings by leveraging DTCC’s cloud-based infrastructure. For example, DTCC is collaborating with Snowflake to enable DTCC Kinetics users access to equity and fixed income data products via Snowflake Marketplace.
We look forward to continuing to build upon these capabilities over the course of 2023.
What trends are getting underway that people may not know about but will be important?
Post-trade data from market infrastructure is a powerful new source of information that can propel front office research and decision making. Financial services firms are evolving from providing broad transactional services, such as settlement and payments, into information and data services where they provide the front office of their clients with better insight into investment opportunity, performance, and risk.
While market infrastructures’ post-trade data has, historically, been used primarily by firms’ back-office teams to measure operational efficiency, front office teams can also leverage this data to gain increased understanding around market momentum and ultimately help improve investment outcomes. As investors continue to navigate market volatility and seek out new and alternative data sources, we expect that post-trade data will be increasingly used across a range of buy-side firms to identify trends shaping the industry and to capitalize on opportunities.
