The demand for real time market data is increasing and the amount of money that institutions in the financial markets pay on real time is getting larger, according to Matt Nurse, Commercial Product Director, Financial Information, SIX Group.
“It’s a significant proportion of their budget,” he said in a conversation with Kevin McPartland, head of market structure and technology research at Coalition Greenwich.
Coalition Greenwich, in a collaboration with Six Group, in a recent study “Market data quality over costs”, interviewed 79 global buy-side and sell-side firms to confirm what drives their choice of market data vendor, what types and frequency of data these firms are buying and consuming, and their views on anticipated future use cases, sources and delivery.
McPartland discussed the results and other trends with Nurse, who emphasized that consumers now seek more than just price information—they want detail and color.
“Consumers want descriptive data, summary data and rationales for why things move,” Nurse said.
This shift reflects a growing need for more comprehensive and reliable data sets that can drive informed decision-making, according to McPartland.
Cloud technology featured prominently in the discussion. Nurse identified the cloud as a transformative force, highlighting its flexibility, ease of use and ability to facilitate data standardization.
Nurse said: “The survey found that adoption is a marathon, not a sprint. We’re not even kind of halfway there. And that’s very similar to other asset new asset classes coming out in the market.”
He noted that many firms are adopting digital platforms that leverage multiple data sets, enabled by cloud infrastructure. “Cloud, clearly, is progressively enabling the development of digital platforms using multiple data sets,” he stated.
The cloud’s scalability and accessibility will enable organizations to harness vast amounts of data and derive actionable insights, according to McPartland.
The conversation also delved into the evolving expectations surrounding market data.
McPartland asked Nurse about the decreasing latency in data delivery and whether it has become a critical factor for organizations.
Nurse acknowledged that although not every firm prioritizes ultra-low latency, they do want real-time—more specifically, delayed real-time that can be applied in many core use cases.
He cautioned that entering the low-latency space can be a cost-intensive endeavor and that understanding the relationship between timeliness and specific workflow is more critical. “It’s very important that when you go and see any of these institutions, you’re really asking the right questions and challenging the assumed requirements that may not necessarily be latent sensitive,” he advised.
The discussion also focused on the correlation between data quality and the utilization of advanced technologies, such as natural language processing (NLP) and artificial intelligence (AI).
Nurse emphasized the significance of having reliable data sources to ensure accurate outputs. “If the input or the output is highly likely to be poor, getting the right data sources at the beginning means you’re going to get the right results,” he explained.
This insight underscores the critical role of data quality in optimizing the performance of cutting-edge technologies, added McPartland.
Looking ahead, Nurse predicts that market data will continue to receive substantial budget allocation. He emphasized the continued importance of data as financial institutions embrace cloud-based solutions.
He also noted the growing interest in alternative data, which has garnered attention for its potential to provide unique insights and enhance investment strategies. “[As we move] toward the cloud, data will continue to be given budget … especially for data sets that have gotten a lot of attention like alternative data,” Nurse projected.
“As organizations navigate the changing market data landscape, a focus on data quality, leveraging cloud infrastructure and staying attuned to shifting consumer demands will be crucial to unlocking the full potential of market data within financial markets,” said McPartland.de
