Many firms are turning to specialist managed services, in which market data cost management is partially or wholly outsourced, to handle their day-to-day needs and obligations. This in turn frees up valuable time and resource to focus on value creation within the business lines. In fact, industry experts predict that the use of managed services is expected to grow by 15-20% in the next 5 years among financial institutions of all sizes.
This is the first article in a series on the future of market data subscription management. We have summarized 4 articles from this series in an e-book.
TRG Screen appoints Nadine Scott as Global Head of Managed Service
TRG Screen is at the forefront of the shift to managed services, leveraging its cutting-edge data management software and seasoned team of experts. We are building out our managed services capability so we can meet this growing demand and continue to drive success for our customers in a repeatable and scalable way.
We have recently appointed Nadine Scott as Global Head of Managed Service to help us forge ahead with our plans to create a world-class market data management ‘global center of excellence’ that the industry can depend upon. In her two-decade market data career, Scott has held a variety of senior roles at tier-1 banks and was most recently Global Head of Market Data Services Category at UBS.
Here, she shares her perspective on why managed services are gleaning so much attention right now and her vision for market data management as a managed service.
What is your vision for managed services in market data management?
Scott: “It’s almost as if events have overtaken how firms manage their market data costs. It’s a really complex environment and keeping on top of it can consume a great deal of time and resources.
“I see a gap for a kind of utility for the commercial management of market data. By utility, I mean a service that will relieve market data teams of the vital administrative tasks. Firms from across the industry can tap into the service and never have to worry about how they will stay on top of these complex, time-consuming processes.
“This is where I see the opportunity for managed services at TRG Screen. We live and breathe market data management, with best-of-breed software solutions and expertise attuned to the nuances of market data management, underpinned by industry best practice. Why wouldn’t you use it? Why would you try to create, and maintain, this capability yourself?”
How would this utility shift the status quo?
Scott: “My future vision for managed services is similar to what TRG Screen’s Axon product has done for exchange and vendor declaration process. Tasks around exchange management, declaration and policy are completely taken away from the customer.
“The business only ever sees outcomes; they don’t really see what happens to produce those outcomes. Anyone who works in market data administration knows how complex it is and that complexity is growing.
"TRG Screen managed services enable the people working in market data to focus on more knowledge-based work, partnering with the business on understanding use cases, helping them navigate a complicated licensing landscape and working with vendors to understand what’s out there. Because those two things really add value to the businesses that market data teams support.
“I’ve always been passionate about the market data team having a monitoring and oversight strategy on data consumption, and TRG Screen has the most complete solution on the market.”
What is driving the growth of managed services?
Scott: “Ultimately, it is driven by the fact that the business wants to do more innovative things with data to get a competitive edge. They are not just being charged for terminals anymore, they are charged for use cases – how data is consumed and the value they derive from it – and it’s only driving cost in one direction. That situation needs to be managed through technology and expertise - there is no other way.
“As the vendor landscape becomes more complicated and more expensive, questions start to be asked and the place to come for answers is TRG Screen, not just for the technology but for expertise and best practices which form the basis of our managed service.”
Watch Nadine's Intro Video
Are managed services just for tier-1 banks?
Scott: “Not at all. We sometimes feel there is more to be done to enable mid-tier clients through managed services. With costs commonly not going through a centralized inventory system, these firms may not see the full cost of ownership. You need such a system if you want transparency over your data costs, with the right expertise to manage it all. This can be a luxury that some mid-tier firms aren’t able to enjoy.
“Anyone spending on market data needs to have it managed professionally, with purpose-built software backed by an experienced team with the necessary skills. The days of trying to manage market data costs with spreadsheets are long gone.”
Where does this leave market data teams? Some say there is a lack of talent in the industry.
Scott: “The market data function, where it exists, needs to be sophisticated to respond to some of these challenges, and that takes investment in talent.
“It’s true that senior people are retiring, but the consistent thread here is that vendors’ commercial policies are evolving and that affects everybody who uses data. So that sparks a trade war for experienced people. It can be a real headache attracting and retaining skilled people who understand the marketplace and know the nuances of market data management. One thing is for sure – a TRG Screen managed service alleviates this headache.”
What is TRG Screen doing to ensure it has the expertise it needs?
Scott: “We are creating it ourselves! Our training and development approach is my top priority and closest to my heart, given I myself have risen through the ranks of various market data commercial roles. I think our obsession with training and development is proportionate to our managed service ambitions.
“We have some of the most experienced people in the market within our team, and they are leading and developing the next generation. All our new recruits have the qualities to deliver service excellence for our clients, brilliant work ethic, customer care, diligence and professional curiosity. Our senior team teach them the rest and of course our team are backed up by best practices and specially designed software.
“TRG Screen is an ideal place for the next generation to learn and have a fulfilling career. They will interact with a hugely diverse group of clients and come across the whole gamut of challenges faced in market data management.”
What will success look like?
“The managed service must be better than the alternatives available and that comes from a blend of expertise and technology and best practices coming together to solve the market data management puzzle.
“And the most comprehensive solution is TRG Screen’s because of its expertise and access to market-leading products such as Axon, Optimize Spend and Xmon - managed service is the perfect complement to that.
“If we at TRG Screen, with our solutions and our managed service, could make our clients successful in delivering value for the businesses they support, I’d be really proud.”
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