An overview of a Best Practice Approach for Market Data Managers at Financial Institutions

1. PREPARING
MARKET DATA MANAGEMENT
FOR 2010 AND BEYOND
A STRATEGIC IMPERATIVE
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2. Executive summary
In order to improve your Market & Reference Data
Strategy, you need to understand (“top-down”)…
1. Your business
2. Your business’ goals and drivers
3. Your current market data organization
4. The data classes, end-user applications and contracts/T&C’s that can
be subjected to (short-term) review
A better understanding of each of these will allow
you to determine what your strategy should be and
how to execute it.
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3. YOUR BUSINESS
YOUR EXPERIENCE
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4. Your business
• Make sure you understand…
– How your business users make money, and
– How dependent they are on the availability and functionality of the
current and future systems
• Will your business spend money on
– People?
– Hardware & Software solutions?
– Content?
provided the right business case is made?
© Screen Consultants 2010

5. GOALS AND BUSINESS DRIVERS
OUR EXPERIENCE
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6. Business drivers
Screen’s Best Practice experiences
• Continuous improvement of operational excellence in
Market Data Management is required to maintain a
competitive advantage in today’s markets
• Compliance (with legislators, regulators, exchanges and
vendors) requires a higher level of transparency and
traceability of information
• Ongoing cost pressure forces the implementation of
further automation and the realization of economies of
scale
• External specialist resources, insights and expertise are
useful to initiate and execute the necessary change
management programs
© Screen Consultants 2010

7. End user firms’ strategic objectives
Key objectives for market data management:
• More than half need to pursue an overall cost
reduction
• About a quarter are planning or are engaged in
improved data cleansing
• A quarter are looking at more cost-effective
data storage options
Source: Streambase market data review 2009 amongst 300 global Buy and Sell side firms
© Screen Consultants 2010

8. End user firms’ stated plans
• One third of the respondents want to
eliminate redundant or duplicate data services
• Almost one third wil reduce/have started to
reduce the number of data terminals
• A quarter of respondents are reviewing
staffing; analysts, management, overhead
Source: Streambase market data review 2009 amongst 300 global Buy and Sell side firms
© Screen Consultants 2010

9. A Paradox
End user firms want to reduce spend…….. but major vendors
succeed in growing revenues
Do you recognize this situation in your firm?
2007: 23 billion usd 2008: 25 billion usd
Source: IMD year book and Burton Taylor
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10. YOUR MARKET DATA ORGANISATION
SHARED EXPERIENCE
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11. Your Market Data Management Organization
• How are you organized, both locally and globally?
– Centralized or hub(s) and spokes?
– IT, sourcing and admin under one roof, or separate?
• Do you have a good understanding of
– The people skill sets present in your group?
– The IT solutions and technologies available to you?
• How good are your
– Management Information Systems
– management accounts
– contract management databases?
• What operational, tactical and strategic initiatives were
taken previously?
• And… How well sponsored are you?
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12. DATA, APPLICATIONS AND CONTRACTS
POTENTIAL AREAS FOR REVIEW
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13. Identify the areas for review
• Data
– Relevance i.r.t. purpose
– Cost of Timeliness
– Duplication
• End-user applications
– Relevance i.r.t. value-add
– Duplication
– TCO
• Contracts
– Coverage
– Duplication
– T&C’s
© Screen Consultants 2010

14. EXPERT HELP
SCREEN CONSULTANTS
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15. Screen group of companies
Relevant Company Characteristics
• Founded in 1990
• Partners & Consultants: Investment Banking,
Investment Management and/or Industry vendor
background
• Highly specialized and focused product & service
offering, with own Research & Development center
• Global network and international experience
• More than 300 clients and 500 assignments successfully
completed, world-wide
• Vendor independent, privately owned
• Member of
• Track record for reducing market data spend
© Screen Consultants 2010

16. Screen group of companies
Locations
London HQ The Netherlands
OFFICES
Stockholm
The Netherlands
Frankfurt Head Office
New York Paris Zurich Tokyo
Barcelona Athens Switzerland
Tunis Hong Kong
Sweden
France
Tunisia
Johannesburg Sydney Market Data Admin
Outsourcing Center
AGENTS & PARTNERS
Red: Screen subsidiaries
Blue: Screen representation USA Australia
In progress Screen / Brabus
Japan Spain
Intersoftkk MedySIF
Hong Kong & Singapore Greece
Market Data Consultants Ltd F-Solutions
United Kingdom Germany
Spearhead and Partners Ltd IBX
© Screen Consultants 2010

17. Screen group of companies
Reference selection
© Screen Consultants 2010

18. MARKET DATA MANAGEMENT
FOR 2010 AND BEYOND
Screen Consultants
www.screenconsultants.com
Evert-Jan ten Brundel
ej.tenbrundel@screenconsultants.com
UK: 07787-128845
Europe: 0031 6 575 36948
© Screen Consultants 2010