A New Approach to Market Data Management

Market data is an expensive commodity and experienced individual who can manage and control this expenditure are not easy to find. The tools available to help manage the breadth of data sources used in financial institutions also command high price tags,but now there is another way...

3di has more than 20 years experience in the market data industry. We provide bespoke services, helping organisations take control of all aspects of their market data.

Strategic Cost Optimization Reviews

Our Strategic Market Data Reviews are delivered using a 3 phase process, allowing for client input and monitoring at critical checkpoints. Our objective is to realise economies for our clients, with a Return-on-Investment that clearly justifies the undertaking.

Data Re-distribution Reviews

Advanced trading methods, new complex markets and a surge in regulatory and compliance demands, have resulted in higher volume and more widespread use of market and reference data than ever before. Today, financial institutions need to source, manipulate, derive, cleanse, store and distribute data, in numerous ways and on a global scale.

Not only does this involve cutting edge technology, ultra-low-latency datafeeds and sophisticated distribution mechanisms, today it also means understanding the stringent legalities around the use of external data, within these complex environments.

3di has been conducting data re-distribution reviews for over ten years. We understand the intricacies and complexities of the applications which consume and re-distribute market data. We work on behalf of clients to evaluate data within application environments, breaking down consumption to the appropriate level of granularity.

We analyse and evaluate data within server-based applications, Excel models, esoteric databases, intranets, internets and other forms of storage and retrieval facilities.

• Market data providers
• Exchanges
• Specialist data / news providers
• Rating agencies
• Brokers
• In-house sources.

Utilising a structured approach and a proven methodology, our reviews provide complete transparency on where and how data is sourced, how it is used and distributed, for what purpose it is needed and finally where it ends up. Furthermore, any risk around current data use is assessed and any breach highlighted in financial terms.

3di's in-depth understanding of vendor and exchange re-distribution policies helps our clients to:

• Rectify any contractual - and therefore legal - breaches (quantifying risk in financial terms)
• Provide transparency around a highly complex (and often global) applications environment
• Understand the ‘true’ cost of market data within each application
• Comply with internal audits / policies
• Obtain crucial information for future vendor / exchange audits
• Reduce dependency on individual providers
• Increase awareness of the complexities and implications of data re-distribution.

Vendor & Exchange Audits

Prior to the information revolution, Vendors' and Exchanges' key focus has traditionally been the end-user seated in-front of a single terminal displaying the data. Today, these information suppliers have to manage the huge impact of programmatic or ‘black-box’ trading, new advanced technologies used to display and distribute their data and the inability of many institutions to keep pace with the development of applications to meet new and complex business requirements.

In response to this predicament, vendors and exchanges have increased the number of audits they conduct. This provides a structured framework, in which clients must divulge the exact use of the data, enabling the supplier to identify any unauthorised use and subsequent additional charges that may be owed.

Over the past 10 years, 3di has conducted numerous audits on behalf of buy and sell side firms. We may lead or participate in any of the following audit activities:

• Pre-audit preparation (conducting a full ‘data re-distribution review’ or housekeeping exercise to meet the criteria of the audit)
• Undertaking of the audit (alongside or fully representing the client)
• Post-audit follow-up / clean up.

Having been heavily involved from both the vendor and client side in the processes, procedures and commercials around data policies, 3di can also help clients create a new approach to data management, preventing future fines, back-charging and reputational risk in the market.

Market Data Bureau (MDB)

3di's Market Data Bureau (MDB) is a fully managed service, which efficiently and cost-effectively manages day-to-day tasks associated with the administration and control of market data.

Market Data Bureau Services include:

• MDS change management
• Invoice reconciliation
• MDS procurement
• Business / senior management reporting
• Budget and forecast analysis / reporting
• Proactive user profiling and requirement analysis
• Evaluation and substitution of market data solutions
• Negotiation and re-negotiation of vendor contracts
• Administration of inventory, entitlement and usage tools
• Internal communication of market trends and regulatory changes impacting MDS.

In combining 3di's extensive industry expertise with our unique Market Data Bureau tool set, customers benefit from:

COST EFFECTIVENESS- We are significantly cheaper than permanent staff; no hardware or software costs, no recruitment or agency fees.

SCALABILITY - Additional resources can be provided to cover increased workloads.

EXPERIENCE - Our staff are experienced and can offer training.

AVAILABILITY - Back-up staff ensure that you are not exposed during staff holidays, sickness etc.

FLEXIBILITY - The service is tailored to your requirements.