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Reference Data: Tech Mahindra Details Global Data Utility Based on Acquired UBS Platform

Tech Mahindra, a business process outsourcing specialist and parent of London-based investment management technology consultancy Citisoft, has repositioned a reference data platform acquired from UBS Global Asset Management to offer an offshore reference data utility aimed at meeting market demand for lower cost, high quality data that can reduce risk and increase efficiency.

The global data utility has been introduced under the Tech Mahindra Managed Data Services brand and offers securities reference data across all asset types, reference data for corporate actions, tax information and end-of-day and intra-day validated pricing data. The utility handles data cleansing and validation, with clients buying licences to access the data.

Tech Mahindra suggests the utility differs from other offerings in the enterprise data management market as it is owned by the company and can be developed. It is also agnostic on data feeds, including 20 from vendors including SIX, Markit, Bloomberg, Thomson Reuters and DTCC.

The company’s first customer is UBS Fund Services in Luxembourg. Under the terms of a five-year services contract with UBS, Tech Mahindra will create and store golden copy data and provide multiple intra-day golden copies to the asset manager. As part of the acquisition and customer deal, Tech Mahindra, which is headquartered in Hyderabad, India, will take on some staff from UBS Global Asset Management who were working on the platform in Luxembourg, but most staff will be located in India.

As a repositioned platform, Tech Mahindra MDS already covers all time zones, markets and asset types, updates 2.5 million issuers on a daily base, receives 200,000 customer price requests and validates 75,000 prices. Some 20,000 corporate actions are checked every day, along with 1,800 tax figures. Looking forward, Tech Mahindra plans to extend these metrics and add reference data around indices and benchmarks, legal entity identifiers and clients.

While Tech Mahindra will lead sales of the service to the banking, financial services and insurance sectors, Citisoft will be able to provide consultancy as necessary. Steve Young, CEO of Citisoft, says Tech Mahindra MDS has been designed to improve data quality and drive down the total cost of data ownership, in turn reducing risk and increasing efficiency. To manage clients’ cost issues, the company has built a toolkit into the data management system that allows users to analyse the cost of owning data, including people, processes and technology. Data quality will be underpinned by service level agreements and key performance indicators will be added as more clients sign up for services and data volumes grow.

Reflecting on the data challenges faced by financial firms, Citisoft Group CEO Jonathan Clark, concludes: “Outsourcing models have evolved over time and attitudes are changing as firms acknowledge that there is a big difference between outsourcing and offshoring, and that captive outsourcing is not an efficient approach. The need is for a commercial relationship with a centralised data utility that can deliver high-quality, accurate data and a lower total cost of ownership.”

Source: Reference Data Review, 24.07.2013

Filed under: Corporate Action, Data Management, Data Vendor, Market Data, Reference Data, Standards, , , , , , , , , , , , , , , , ,

Thomson Reuters Outlines Plans to Lighten the Burden of Symbology

Thomson Reuters has set out its store on symbology saying it does not support the promotion of new identifiers as a means of improving data management, but is keen to support industry standards and has plans to offer services such as symbology cross-referencing to ease the burden on data managers.

The company documents the development of symbology, its use and complexity in a white paper authored by Jason du Preez, head of symbology services at Thomson Reuters, and entitled ‘Solving for Symbology Discord, the Identity Challenge’.

Thomson Reuters set up a symbology business last year and published the white paper to acknowledge the importance of symbology and recognise its challenges. Du Preez says: “We don’t believe there is a silver bullet that will answer the problems of symbology. Innovative new products continue to exacerbate the problem and that is not going to change. We can, using our core competencies, create linkages, invest to take on the burden of linking data sets, and maintain code mapping. And we can allow the market to make more use of our intellectual property.”

Du Preez cites licences introduced last summer to extend the use of the company’s proprietary Reuters Instrument Codes (RICs) in non real-time content, as well as its agreement in response to a European Commission antitrust investigation to extend the use of RICs in real-time consolidated data feeds, as moves to open up how RICs are licensed and make them more accessible across all asset classes.

Integration of RICs with Proprietary Identifiers

He says: “As there is no silver bullet, we will invest more in cross-referencing services and tie in quality of information. We will have interesting things to offer over the next 18 months.” Among these he lists the integration of RICs and proprietary identifiers, with firms submitting their codes to Thomson Reuters and the company playing them back as part of its own codes. Other broad cross-referencing services will be tailored to allow clients to access only required cross references and linkages.

“Thomson Reuters doesn’t promote a new code, there are enough out there already. We will continue to use existing codes and extract value from them; the key is linkages between market vendor codes and proprietary structures. While clients face regulatory and cost drivers, we will take care of linkages and cross referencing to improve the breadth and quality of client content.”

Thomson Reuters’ white paper details the development of symbology and notes the company’s intent, as described by du Preez. It starts by mentioning irregular incidents in the market that remind the industry of the challenges involved when an aggregated or consolidated view across positions is needed, including the incompatibility of core data symbols. The paper states: “The core elements: security identification, counterparty identification and price discovery, were never developed to work efficiently and effectively on an enterprise/global scale.”

Looking at the current state of symbology, the paper flags the fragmented identification methods resulting form the market’s approach to symbology, including data providers’ and data aggregators’ different means of identifying the various parts of securities or counterparties, as well as firms’ creation of proprietary identifiers to fill gaps in vendor provision. The paper reports: “[Symbology] is still a ‘cottage industry’ where the identification schemes put in place by one group are locally focused and usually limited to a specific slice of the securities market. This consumes resources: in many cases the task of mapping multiple sets of disjointed or partially overlapping symbols can consume as much (or more) development time and computing resource as programming the business logic itself.”

The paper reviews changes in the financial industry since 1993 that have complicated symbology and notes the increasing difficulty, yet increasing need, to integrate information across a firm’s complete range of trading businesses to achieve effective risk management. On the flip side, it points to the parallel need to analyse rapidly growing stores of information and connect increasingly diverse datasets to find relevant information in the quest for alpha. It states: “The sophistication of the methods we employ to aggregate, rationalise and navigate information bears a direct relationship to the size of the lead a firm can have in the financial marketplace.”

How to Unambiguously Identify Information

While the outcome of linking and navigating information can be positive, it presents significant challenges as a lack of consistent and comprehensive global industry standards means firms must maintain symbology cross references, a difficult and often flawed task, particularly in banks with many different trade and compliance-related systems. Du Preez writes: “A popular approach is ‘we can build an adaptor’. Adaptors have become some of the most complex processes in banking technology. That is not data management. It is trying not to get eaten by the alligators.” He goes on to surmise: “Data managers do not want to deal with these problems – they ultimately want services they can reliably use to unambiguously identify information.”

Enter Thomson Reuters with its vision of how to resolve these problems. “We believe that these linkages are the key to enormous untapped value. Being able to enter the data model through any entity identifier (quote, security or legal entity) and easily navigate and explore all the linkages between related entities not only puts a firm in control of its risk position, but also creates a window into opportunities. Industry standards have a significant part to play as they provide a universal start and end point; Thomson Reuters is a strong supporter of symbology standards in the data industry and we will be first in line to adopt and link industry standard identifiers to our content sets.”

The report discusses the challenges propagated by the use of multiple symbologies and the workload associated with the maintenance of cross reference tables in local security master databases. It touches on Thomson Reuters’ plans to provide cross reference services centrally and leverage its core competencies and infrastructure to ease the burden on institutions that have traditionally solved the problems themselves.

It states: “Cross referencing is a reality that cannot be avoided – we aim to make this as accurate and cost-effective as possible for our customers. We also understand that while symbology is an important part of the picture, translation and synchronisation services will also play a critical part. The need for these services is evidenced by the burgeoning desire of the market to offload these onerous data management functions to specialist providers.” The report concludes: “Thomson Reuters is investing now to continue to expose the growing capabilities of its data management infrastructure and ensure that structured and unstructured data come together in a rich tapestry of knowledge with the aim of maximizing utility to trading algorithms, research, analysis and information discovery.”

Source: A-Team Reference Data Review, 26.03.2013

Filed under: Data Management, Data Vendor, Reference Data, Standards, , , , , , , ,

Thomson Reuters to Open Up RICs for Consolidated Feeds Under EC Settlement

The European Commission has ended its lengthy enquiry into Thomson Reuters’ licensing policies for Reuters Instrument Codes (RICs), accepting commitments from the company that will create a more fluid market for real-time consolidated data feeds. The deal creates a new environment for Thomson Reuters as it finds itself competing in an increasingly open market.

The company welcomed the Commission’s decision – perhaps on the basis of the end of the enquiry rather than the commitments it must stick to – and was quick to point out that its new licensing commitment is consistent with the move it made in June 2012 to make RICS available foruse with non-real-time information in client and non-client financial institutions’ trade processing systems. At that time, Thomson Reuters’ then-Enterprise content chief Gerry Buggy, described the move as the “first step in supporting the financial community’s symbology needs across all parts of the trading life cycle through our evolving symbology services.”

The Commission made its decision to end the enquiry after accepting commitments put forward by Thomson Reuters in May 2012 that were then market tested with a third-party comment period running until August 2012. The commitments have been made legally binding, with the key outcomes being that Thomson Reuters’ customers can continue to use RICs in real-time applications after they have switched to an alternative real-time consolidated data feed provider and use RICs in combination with the alternative provider’s data.

Commenting on the Commission’s decision, Commission vice president of competition policy, Joaquin Almunia, says: “Information plays a key role in ensuring that financial markets operate in a healthy and efficient way. In order to correctly assess investment opportunities, market participants need to access accurate and timely financial data, for example through consolidated real-time data feeds. The commitments offered by Thomson Reuters will enhance competition in this market. Financial institutions that use RICs will now be able to switch to alternative providers more easily.”

Responding to the Commission’s decision to adopt Thomson Reuters’ commitments, David Craig, president of Financial & Risk at the company, says: “Following a detailed examination of the facts, the Commission accepted our proposal without any finding of infringement of EU competition law by Thomson Reuters. We now look forward to continuing to work with our customers to bring world-class, real-time data feed and symbology solutions to market.”

In essence, Thomson Reuters’ commitments allow customers to license additional RICs usage rights for the purpose of switching data vendors and to use RICs for retrieving data from other providers against a monthly licence fee. The company will also provide customers with the necessary information to map RICs to alternative symbology, and allow third parties to develop and maintain switching tools that allow RICs and rival services to interoperate by mapping RICs to the financial identifiers of other data feed providers. Third-party developers can use and keep RICs in their switching tools on payment of a monthly licence.

If the Commission’s decision is favourable for users of consolidated real-time data feeds, it must also be of great interest to their suppliers, with 2013 promising to be both a battleground and a peace mission as suppliers struggle to maintain market share while responding to market demand for more open symbology solutions.

Source: Reference Data Review, 20.12.2012

Filed under: Data Management, Data Vendor, Reference Data, , , , , , , ,

Thomson Reuters Opens RICs to all with Non-Realtime License

Thomson Reuters is taking a step toward answering client calls for more open access to its Reuters Instrument Code (RIC) symbology. The company is making RICs available for use with non-real-time information in client and non-client financial institutions’ trade processing systems.

Enterprise content chief Gerry Buggy, who has spearheaded Thomson Reuters’ response to the EC anti-competition complaint, the new facility is the “first step in supporting the financial community’s symbology needs across all parts of the trading life cycle through our evolving symbology services.”

The move comes in the wake of the EC investigation and subsequent complaint into the use of RICs in real-time consolidated data feeds. In response to that complaint, many financial services practitioners have called for more open access to the RIC, which is entrenched in many firms front-, middle- and back-office trading and trade processing systems.

According to Jason du Preez, Global Business Manager, Enterprise Platform, at Thomson Reuters, the latest initiative “has nothing to do with the EC investigation. The EC is focused on use of RICs for accessing real-time information, while the new licences are focused at firms looking to trade with the RIC or use the RIC to access non-real-time information.”

Du Preez says that latest move means that “any market participant can buy a license that will allow them to trade using the RIC. This will allow the use of the RIC for pre- and post-trade activities, and the right to redistribute RICS in this regard.”

The new RICs arrangement will allow market participants to use and cross-reference the RIC symbol for trade activities. As such, it can be used to facilitate the advertisement of liquidity, acceptance of trade flow and execution of post trade activities with the RIC symbol as a consistent identifier throughout the process.

Additionally, the service will allow Thomson Reuters pricing and reference data customers to use RICs to reference and retrieve securities data from their securities master databases and navigate to connected content such as legal entity identifier (LEI) information.

Du Preez says that “Firms that purchase reference data from Thomson Reuters will also be granted the right to use the RIC to access any non-real-time information, essentially allowing them to use the RIC to access any content, including third-party party content, held in their securities master databases.”

Thomson Reuters believes the new service will encourage more efficient and reliable capital markets by giving market participants the freedom to use RICs symbols irrespective of whether they use Thomson Reuters enterprise data products.

As part of the latest initiative, the Bats Chi-X Europe exchange has signed up for the service, which will allow it to deploy RICs in the post-trade services it offers.

According to Paul O’Donnell, COO at BATS Chi-X Europe, “Cross-referencing the BATS Chi-X Europe instrument codes with the Thomson Reuters RIC symbols will enable us to reach new market participants as well as improve efficiency and data transparency by facilitating accurate identification of securities on our platform.”

Du Preez says obvious candidates for adopting the new arrangement include “trade hubs, third-party trade/post-trade processing firms or anyone that wants to send, receive or cross reference messages that contain securities identified with a RIC.”

Source: A-Team Reference Data Review 27.06.2012

Filed under: Data Management, Data Vendor, Reference Data, Standards, , , , , , , , , ,

Brazil: TRADING SCREEN launches OMS, THOMSON REUTERS offers Elektron Hosting

TradingScreen Inc. launches TradePlus, its order management system (OMS) for the sell side in Brazil.

TradePlus, which will be available globally later this month, integrates all trading infrastructure required by broker dealers through a no-install Software-as-a-Service model.

TradingScreen’s TradePlus clients will benefit from an exchange co-located in a local datacenter and an office in Brazil, which ensures low-latency and the industry leading follow-the-sun support that TradingScreen is known for. TradePlus has seamless integration into the world’s leading execution management system (EMS) for the buy side, TradingScreen’s TradeSmart, ensuring a new level of communication between brokers and their clients.

“Sell-side firms looking to buy an OMS face significant challenges when trying to find a system that will integrate with their buy-side customers,” said TradingScreen CEO Philippe Buhannic. “TradingScreen’s TradePlus provides a significant advantage, because there is integration between both sides right out of the box.”

TradePlus covers the entire workflow from liquidity management, order management, book passing, warehousing, sophisticated trading tools, an algo development environment, allocation management and supports a full integration to local back office and middle office systems while leveraging the TradeNet network distribution capability.

“TradePlus offers an innovative set of hosted exchange links and risk and compliance features that insure a new level of control in a high-volume trading environment. TradePlus also provides a highly sophisticated and efficient method for trading the Brazilian equity and listed derivatives markets, while allowing brokers to give their clients the best EMS in the market,” said Jose Barrera, Director of TradingScreen’s Sao Paulo office. “TradingScreen has the largest number of deployed EMS screens globally, and a deep understanding of the market in Brazil. With this foundation beneath it, TradePlus is the right product at the right place and the right time.”

Thomson Reuters launches  Elektron hosting and managed services in Brazil.

The new service, situated in close proximity to the BM&F BOVESPA exchange, will provide trading firms with cost effective, low latency access to the real-time data required to fuel algorithmic and high-frequency trading strategies in Brazil.

Based in São Paulo, the new Elektron data solution delivers high speed connectivity to BM&F BOVESPA for market participants seeking local liquidity in Brazil, including full depth of market pricing along with US-traded American Depository Receipts (ADRs) and CME futures data. By accessing the Elektron services, either through cross-connecting applications within the data centre or externally through a choice of connectivity options, local firms can consume both low latency local market content as well as global, cross-asset real-time data from over 350 electronic venues and hundreds of OTC market contributors and reference data sources.

Investor interest in the fast-growing Brazilian market has increased rapidly in recent years, driving market liquidity and seeing an expanding number of domestic and international firms adopting algorithmic trading. Elektron Hosting and Managed Services provides the comprehensive, high-quality, real-time data and high-performance delivery required to support these trading strategies and help customers gain competitive advantage.

Mike Powell, managing director, Elektron Hosting and Managed Services, Thomson Reuters, said: “The launch of Elektron in Brazil is a natural extension of our established business in the country and supports our customers’ evolving requirements. With Elektron, we continue to bring together global market participants and deliver world-class content that further empowers these communities. We are delighted to be working with BM&F BOVESPA in Brazil to address the requirements of our collective clients for high-performance, cost-efficient data solutions.”

MondoVisione, 24.04.2012

Filed under: BM&FBOVESPA, Brazil, Exchanges, , , , , , , , , , , , , , ,

Thomson Reuters fails RIC licensing market test – Symbology

Thomson Reuters has failed to appease EU antitrust bodies over proposed concessions in the way it licenses the proprietary Reuters Instrument Codes.

In 2009 the European Commission opened antitrust proceedings against Thomson Reuters over possible abuse of its dominant market position in the supply of RICs – codes that identify securities and are used by financial institutions to retrieve data from Thomson Reuters’ real-time feeds.The EC argued that the firm could be abusing its dominant position in the market for these consolidated real-time datafeeds by stopping customers from using RICs for retrieving data from alternative providers and mapping them for such a purpose to alternative symbols.

In an attempt to ward off further action by the Commission, the vendor agreed to let customers license RICs for mapping purposes over a five-year period for a monthly fee based on the number of RIC symbols to be used.

However, in a speech in Copenhagen today, EU competition chief Joaquín Almunia, said that a market test of the new measures had failed to deliver a desirable outcome.

“We have now reached a critical stage in this investigation,” said Almunia. “If no effective solution can be agreed upon, then we will have to draw the adequate conclusions.”

The company could face fines of up to 10% of its turnover if it does not offer further concessions to users.

Thomson Reuters’ rival Bloomberg has moved to make its own proprietary symbology available for free to developers and market practitioners.

Filed under: Data Vendor, Market Data, News, Reference Data, , , , , , ,

Bloomberg unveils its NEXT terminal

On its 30th anniversary Bloomberg officially launched an updated $100 million version of its core terminal yesterday in London and New York simultaneously. The NEXT platform of the Bloomberg Professional Service is intended to give traders and financial services end users faster, deeper insights into the markets and to enable the market data terminal to answer questions more intuitively in future, not just present research and data, via an enhanced ‘natural language’ search function and ‘give me the answer’ front-end tool.

According to Tom Secunda, the co-founder and vice chairman of Bloomberg speaking at the launch, “this is an evolutionary step” that helps order increasingly complex markets and aids productivity, while continuing the company’s mission to deliver on “Mike Bloomberg’s famous three-legged stool, consisting of news, data and analytics”. The NEXT platform consolidates and crucially integrates these feeds better than ever before believes the company, giving users easier access to the information that exists on the terminal and enhancing the customer experience.  “For example, you can ask what was US CPI in 2000 …and bang, there is the answer.” Users can then drill down into the answer for further research, added Jean-Paul Zammitt, global head of core product development at Bloomberg, pointing out that this is the key presentational change in the NEXT platform, requiring every help screen and back end process to be rewritten and updated.

Under development for the last two years, Bloomberg asserts that 3,000 technologists were involved in the overhaul of its core terminal, which is used by traders, analysts and even some large multinational corporate treasuries looking to hedge their foreign exchange exposure. A select group of existing clients, including OCBC Bank, Credit Agricole CIB, and Glenhill Capital were involved in the development phrase, allowing Bloomberg to review common keystrokes and commands across an array of functions in order to improve the customer experience.

More than 100,000 clients have already converted to Bloomberg NEXT at no extra cost in the £20,000 per year outlay since its ‘soft launch’ at the end of last year, with less than 1% converting back to their old terminal. The company said that two thirds of them are using the NEXT platform more than their old terminal and that it wants to convert all of its 313,000 subscriber base for the Bloomberg Professional Service by the end of this year.

“Bloomberg NEXT saves me time by discovering functions and data more quickly,” said Seth Hoenig, head trader at one of the ‘soft launch’ development partners, Glenhill Capital. “The new help menus enable users to find the answer that they need fast. Stumbling upon the hidden gems within Bloomberg has always been revelatory; now it’s easier.”

According to Lars Hansen, senior portfolio manager at Denmark’s DIP, the Danish Pension Fund for Engineers: “Bloomberg NEXT is a major step forward. It is much more intuitive – you can see multiple pieces of information on one screen, which lets you see new interrelationships.”

Bloomberg highlighted what it sees as three key improvements in its updated terminal:

• Better discoverability: Bloomberg NEXT’s new discoverability features allow users to get quick, direct answers to their queries as well as pull together a wide variety of related details such as companies, research and charts. A more powerful search engine means users can type just a few words and go directly to the desired securities, functions, people and news. The streamlined menu listing puts the most relevant information and topics right up front.

• More uniformity: Every screen of the Bloomberg Professional Service has been redesigned to provide a common look and feel. This consistent interface across all asset classes, from FX to commodities and fixed income, and across all functions should allow expert users and generalists alike to more efficiently navigate often-used functions and discover new ones. An educational overview of each market segment for novices is also included in the update.

• Intuitive workflow: The functionality of the Bloomberg Professional service has been re-engineered so that a user should be able to quickly and seamlessly navigate through the series of questions and answers essential to making smart market decisions. The new workflow, with user prompts, in Bloomberg NEXT is intended to allow expert users to drill deeper into the data and to let occasional users discover new functions.

“The complexity and interconnectedness of the global financial marketplace has grown significantly. Business and financial professionals need to synthesize astounding amounts of information to make intelligent investment decisions,” explained co-founder, Tom Secunda. The firm is still a big believer in a single product approach, however, he stressed at the official launch of NEXT but this, “obviously gives us challenges as markets get more and more complex.”

NEXT is Bloomberg’s response. “The pace of change in financial markets will only accelerate and with it the need for more information,” added Secunda, before concluding that he believes, “Bloomberg is now positioned to quickly answer those evolving questions and ensure that our clients will always have the leading edge in making investment decisions.”

News Analysis 

Bloomberg’s new NEXT platform will go head-to-head against Thomson Reuters in the market data sector, which is increasing in value as financial markets get more and more complex and new post-crash regulations place new information demands upon market participants. Both companies are running neck and neck in terms of market data share, with estimates of 30% for each at present.

One terminal is proprietary, of course, with Bloomberg maintaining its closed market data platform in its NEXT iteration, while Thomson Reuters is now following an open access model with its Eikon terminal, allowing users to add their own data and applications. The relative failure of Thomson Reuters Eikon platform, which has sold only tens of thousands of units since launch rather than the hoped for hundreds of thousands, is what prompted the open access model from Thomson Reuters, although it does of course take time to build up a following. It will be interesting to see if Thomson Reuters move allows the firm to win back lost market data share or if Bloomberg’s updated terminal can keep it on its recent upward curve. The former is still benefiting from the 2008 merger that united Thompson Financial with Reuters, giving it synergies in the data collection and delivery areas, but the competition between the two has just hotted up.

Source: Bobsguide, 28.02.2012

Filed under: Corporate Action, Data Management, Data Vendor, Market Data, News, Reference Data, , , , , ,

Thomson Reuters Goes Live with Delta Data Factory

First Derivatives plc ,  is pleased to announce that Thomson Reuters (TR) pricing and reference data group (P&RDG) has selected and implemented FD’s Delta Data Factory (DDF) for use internally as a component in its multi-faceted forward-thinking data delivery strategy. This announcement follows FD’s recent launch of DDF, a hosted data factory service for reference data and also the formation of a dedicated data management division.

Thomson Reuters P&RDG client-centric focus and innovation approach makes use of Delta Data Factory as one element in a strategy to rapidly meet the formatting and workflow requirements of its clients. TR selected DDF as a managed service “data formatting factory” to assist in its strategy to offer TR clients speedy integration and adoption of reference and pricing data.

According to Tim Rice, MD of Global Pricing and Reference Data, “we selected FD’s Delta Data Factory because of the flexibility and rapid implementation speed, powerful data transformation engine, data knowledgeable team, reliable hosted infrastructure and global support model. Within TR’s data strategy, FD’s independence as a strong third party service provider supports and accelerates our plans allowing clients to leverage our data quickly. We’re now successfully live with a number of clients”.

For consumers of TR data, whether it be client-direct or third party application vendors, FD’s Delta Data Factory transforms the data into rapidly consumable formats for TR clients, third party applications partners, security master environments or EDM platform formats.

Dale Richards, President of FD US and Global Head of Data Management at FD commented, “We are very pleased to have TR as a client of DDF. The service is a powerful new model for the data industry and TR implementing and going live is a terrific endorsement of the capabilities”.

DDF is a managed service support model that includes software, expert data staff, support level management, infrastructure, customization tools, hosting and management. FD provides the factory working with clients to implement the best strategy. FD has been hosting and operating systems on behalf of clients for 15 years with ISO27001/SAS70 compliant operating centers.

In addition to data vendors and publishers, financial institutions use DDF to outsource the processing and normalization of multiple in-bound reference data sources into EDM or proprietary security master environments. FD’s also uses DDF to produce customized out-bound formats for their internal clients. Benefits include cost savings and decreased project timeframes.

Source: Bobsguide, 10.02.2012

Filed under: Corporate Action, Data Management, Data Vendor, Market Data, Reference Data, , , , , , ,

China Market Data/Analysis Market Share research revealing mainland China spend to have topped USD340 million, locals vendor own 60%

Burton-Taylor data shows China financial information/analysis demand has grown at 29.5% CAGR since 2003, international content needs are expanding while overall satisfaction levels are dropping

Burton-Taylor International Consulting LLC, a leading information and news industry market research, strategy and business consulting organization, today published a report showing mainland China financial market data/analysis spend to have topped USD340 million, exit 2009. What has historically been an opaque market, has now been revealed to have averaged 29.5% annual growth over the last six years. In addition to competitor market share, the new report shows user requirements for financial market data, news and capabilities in a level of detail never before available for mainland China and indicates Portfolio Managers, Researchers and Sales & Traders are broadening demand for economic data, news and analytic tools.

With combined revenue of USD204.8 million, China Finance Online, Wind and an array of other local China vendors, many not well known to Western market data competitors or analysts, command a 59.8% share of the mainland market. The two largest international players are Thomson Reuters and Bloomberg, with combined revenue of USD116 million generated from the country.

Continued financial market evolution, combined with asset management fees totaling USD16 billion in 2010, will fuel the purchase of more detailed and sophisticated investment data and tools. As the report illustrates, average per user spend on market data/analytics by this segment globally is 0.51% of management fees, or USD26,628 per annum. In China, however, average spend is only USD15,384 per user, indicating significant upside potential as the market matures.

“With Assets Under Management (AUM) projected to hit USD5.0 trillion by 2020, at 1.25% the cumulative asset management fees generated on mainland China over the next decade could reach USD513 billion,” says Douglas B. Taylor, Managing Partner of Burton-Taylor. “Growth of this magnitude draws substantial competition and will result in increasing demand for the information products and tools that enable market participants to both differentiate themselves and maximize return.”

The new report also details the changing user needs, satisfaction levels and product requirements of China Portfolio Managers, Researchers and Sales & Traders. Responses to surveys conducted with market data users in 2009 are compared to responses generated over prior years to reveal that increasing sophistication among market participants is widening the breadth of data demanded and lowering overall satisfaction levels with current data providers.

“We were not surprised to see that Portfolio Managers, for example, had shifted their primary criteria for selecting a data vendor away from attributes such as information update speed and toward attributes such as data quality, vendor reputation and ease of use. This is expected in an evolving market,” adds Taylor. “What did raise our eyebrows, however, was the significant drop in news content and portfolio management capability satisfaction levels, which indicates there may be opportunity for different products or vendors to capture revenue.”

Mainland China market share estimates, along with other sample data from Burton Taylor’s China Financial Market Data/Analysis Market Share & User Requirements 2010 report, may be downloaded free of charge by visiting: http://www.burton-taylor.com/research.html and inputting research sample code CHINA2010EXD.

Source: Burton-Taylor.com, 25.01.2010

Filed under: Asia, China, Data Management, Data Vendor, Market Data, News, , , , , ,

Bursa Malaysia Selects Thomson Reuters For Data Distribution Platform

Thomson Reuters today announced it has been selected by Bursa Malaysia to deliver a new data distribution platform to support their growing trading business. Under the terms of the agreement Thomson Reuters will provide its enterprise platform for high performance information management and real time market data dissemination, improving the services offered by the exchange to brokers.

Following an intensive evaluation phase, Bursa Malaysia selected Thomson Reuters based on the performance and scalability of its solutions to establish an effective and reliable data management platform for the Exchange. The offering combines the latest versions of Thomson Reuters Market Data System and direct feed technology to deliver a low latency, fully redundant and highly scalable real time platform. The platform integrates incoming data feeds from Bursa Malaysia and publishes them for distribution to their members. Market participants will gain unparalleled performance for price discovery, transparency and price improvement.

Lim Jit Jee, Chief Information Officer of Bursa Malaysia said, “As our market grows bigger and more sophisticated, there is greater need to ensure that our data distribution platform caters to speed and scalability of the changing landscape. This new market data gateway from Thomson Reuters will be beneficial to our customers as it allows the Exchange to package market data according to our customers’ needs, as well as ensure that information is distributed in an expedient manner.”

Edward Haddad, Managing Director, ASEAN, South Asia & Pacific, Thomson Reuters, said: “By providing Bursa Malaysia a complete data delivery solution, Thomson Reuters is reinforcing its commitment and ability to provide market leading technology, data, and support services to global exchanges. We are delighted to collaborate with Bursa Malaysia in support of their evolving infrastructure.”

This agreement further underlines Thomson Reuters ability to provide exchanges and electronic trading platform providers with flexible, high performance technology and content solutions to support their business needs.

Source: MondoVisione, 09.12.2009

Filed under: Asia, Data Management, Data Vendor, Exchanges, Malaysia, Market Data, News, Trading Technology, , , , , , , , ,

Thomson Reuters Faces EU Probe of RIC Data Code Issues

Nov. 10 (Bloomberg) — Thomson Reuters Corp., the news and data provider created in a merger last year, faces a European Union antitrust probe into possible restrictions on competitors’ use of identification codes for real-time market data feeds.

Bloomberg provided free access to it’s code just a few days ago.

The probe will focus on whether Thomson Reuters prevents clients from translating Reuters instrument codes  (RIC’s) to alternative identification codes of rival data-feed suppliers, a process known as “mapping,” the European Commission, the EU’s antitrust regulator, said in a statement today from Brussels.

“Without the possibility of such mapping, customers may potentially be ‘locked’-in to working with Thomson Reuters because replacing Reuters instrument codes by reconfiguring or by rewriting their software applications can be a long and costly procedure,” the commission said.

The probe is the EU’s second into financial information providers this year after the regulator said in January that it would review how Standard & Poor’s charges customers for the use of certain codes in databases. Thomson Reuters said last week that third-quarter profit dropped 59 percent on declining revenue at its sales and trading business and legal division.

Thomson Reuters said in a statement that it received an EU questionnaire Nov. 3 and is cooperating with the probe.

“Thomson Reuters data is reliably and consistently identified by a managed code, which we create and maintain to enable navigation of the company’s global content,” the New York-based company said in the e-mailed statement. “Our customers are at the heart of our business and we continue to work with them to explore how best to add value to our data services.”

The commission said it started the probe on its own initiative. Under EU rules, companies can be fined as much as 10 percent of annual sales for antitrust violations. Companies can appeal antitrust decisions at EU courts.

Bloomberg LP, the parent of Bloomberg News, competes with Thomson Reuters in selling financial and legal information and trading systems.

Source: Bloomberg 10.11.2009 by  Matthew Newman in Brussels

Filed under: Data Management, Data Vendor, Market Data, News, Reference Data, Risk Management, Standards, , , , , , , , , ,

Thomson Reuters Q3 net profit slides as markets unit sees revenues dip

Thomson Reuters posted a 59% fall in net earnings for the third quarter on integration costs and lower revenues at the recession-hit markets division.

Revenues were down four per cent, from $3.2 billion in Q3 2008 to $3.2 billion this year. Net profit for the quarter was $167 million, or 19 cents a share, down from $406 million, or 49 cents a share, in Q3 2008. Operating profit tumbled 32% to £378 million, compared to $553 million a year ago.

However, underlying operating profit, when items including restructuring charges are excluded, was up three per cent to $711 million, driven by currency rates and integration-related savings. Adjusted earnings per share were 43 cents compared with 47 cents in the third quarter of 2008.

The firm’s markets division, which accounts for around 60% of all revenues, saw a six per cent fall in revenues after currency movements, to $1.86 billion. However, operating profit for the unit increased 10% to $369 million on integration savings.

Corporate expenses tripled to $163 million in the third quarter, due in part to integration costs. However, the integration has achieved combined run-rate savings of $975 million as at 30 September.

The company reaffirmed its previous outlook that revenues are expected to grow in 2009 and underlying operating profit margin and free cash flow will be comparable with 2008.

However it warns that the “revenue impact of weaker 2009 subscription net sales in Markets and Legal is expected to continue to be a drag on revenues through the first half of 2010″.

Tom Glocer, CEO, Thomson Reuters, says: “Our ongoing focus on the Reuters integration and close cost management across the company has enabled us to continue to grow underlying operating profit. While we would welcome a quick return to revenue growth, we understand how to operate in challenging markets and we are confident that we are outperforming the competition.”

Source: Finextra, 05.11.2009


Filed under: Data Management, Data Vendor, Market Data, News, Reference Data, , , , , , ,

Bloomberg smashes proprietary instrument identifier market – Bloomberg Open Symbology

Market data vendor Bloomberg is looking to create an open standard for financial instrument identifiers by making its own proprietary symbology available for free to developers and market practitioners.

While Reuters Thompson and S&P are under probe by EU, 11.11.2009

The vendor – which has built its business by maintaining tight control over its proprietary data feeds – has created a Website where industry participants can search for and access identifiers developed for the Bloomberg Professional terminal and enterprise data products.

The Website, at bysm.bloomberg.com, offers a repository for Bloomberg Symbology codes at no charge to users, with no material impediments on use. The vendor promises global coverage across all asset classes and “freedom and flexibility in application development”.

Financial instrument identifiers are necessary for a wide array of essential functions in the front and back office. Typically, organisations that administer symbologies – such as Reuters’ RIC codes, Markit’s RED database and S&P-administered Cusip datasets – assert proprietary rights over their identifiers, impose significant limitations on their use and either charge users license fees or include their symbology licenses with the purchase of related products.

By making its identifiers available for free, Bloomberg is driving a horse and cart through this established market model and laying down the gauntlet for other competitors to follow.

Source: Finextra, 04.11.2009

Filed under: Data Management, Data Vendor, Market Data, News, Reference Data, , , , , , , ,

Tora joins Tradeweb routing network

Tradeweb, the leading global provider of online financial markets, and Tora, the leading technology, trading and liquidity provider for Asia, jointly announced today that TORA Compass is the latest concentrator to join the Tradeweb Routing Network (TRN).

This connection will provide Tora’s buy-side users with access to liquidity from over 650 certified trading destinations particularly in North America and Europe.

TRN is one of the largest FIX protocol-based messaging networks in the world trading well over 1.6 billion shares per day globally. TORA Compass is the most comprehensive multi-broker, multi-product electronic trading platform focused on Asia.

“Tora is an excellent addition to the Tradeweb Routing Network. Their market leadership in Asia, sophisticated algorithmic trading strategies and deep liquidity attract an impressive user base that further enhances the world-wide TRN trading community,” said Jim Fiesel, Managing Director for Tradeweb’s equities business.

“We are delighted to be connecting to the Tradeweb Routing Network. Its global prominence complements our deep coverage across Asia and provides TORA Compass clients with increased broker connectivity in North America and Europe,” commented Robert Dykes, CEO of Tora.

Source: Finextra, 12.10.2009

Filed under: News, Trading Technology, , , , ,

SEC to extend dark pool probe

The Securities and Exchange Commission is to extend its regulatory probing of dark pools to include issues surrounding high frequency trading, direct market access and co-location.

Speaking at a securities conference in Basel, Switzerland, SEC chairman Mary Schapiro reiterated regulatory worries over the expansion of dark pool trading and its impact on transparency and market fragmentation.

“As dark pools divert an increasing volume of order flow away from the public quoting markets, the potential for market fragmentation is a concern,” she said. “Also, where there is less publicly-available information about the trading practices of significant markets, there may be more opportunities for information to be leaked only to favored market participants. For these reasons, the SEC is considering whether dark pools need more light.”

The SEC has already proposed a ban on flash order types, where users are given an advanced peek at unfilled orders ahead of the wider market.

The regulator is now widening its probe to cover other recent advances in automated trading, said Schapiro.

“We have recently begun an in-depth review of multiple market structure issues given the rapid advancements in technology,” she told the conference. “In addition to our recent actions with regard to flash orders and our current focus on dark pools, we will also examine high frequency trading, direct market access and co-location.”

Schapiro’s remarks came as Thomson Reuters released the results of a poll of 100 buy and sell-side participants on the impact of high-frequency quantitative trading.

While 70% of respondents felt that high frequency trading strategies made execution easier and brought additional liquidity, 63% agreed that the tactic could potentially pose a risk to the market.

Ninety-six per cent of the audience felt that regulators are not fully up to speed regarding the implications of high frequency trading.

Similar sentiments have been expressed this week by the World Federation of Exchanges, which has called for co-ordinated action by regulators to reign in the spread of dark pools.

Speaking at a WFE conference in Vancouver, Federation chairman William Brodsky, said: “We’ve allowed the technology and the evolution of these markets to run way ahead of the regulators’ ability to understand them.”

Source: Finextra, 09.10.2009

Filed under: Exchanges, News, Risk Management, Trading Technology, , , , , , , , , ,

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