Client Success Story: Centralizing Market Data Management - Optimize your market data governance

The Client ✍️

The client is a US based bank with branch offices in Europe, the United States and Asia.

The full scope of financial instruments is traded globally. The organization has many functional relationships with market data vendors.

The client has contracts with over 100 vendor organisations and uses a multiple of services from these vendors. The Bank’s Market Data Management can be qualified as REACTIVE.

market-data-management-stages-and-peer-positions

Analysis 📊

Currently some of the market data organization tasks are managed by internal staff. Certain activities are not performed, mostly due to lack of knowledgeable resources.

There is no market data inventory product in place. The market data administration relies on Excel sheets.

There are no documented processes in place and many on-boarding and decommissioning activities are ad-hoc based. Furthermore, market data is managed by local entities and not coordinated.

five-key-roles-market-reference-data-management

In practice, the fifth pillar, demand management is instrumental in attaining immediate cost savings.

However, all 5 pillars are crucial for:

sustained market data cost control
having the right services in place
compliance with the usage terms & conditions of security exchanges and vendors.

The process ⚙️

Improving market data governance, can be realized by centralizing market data (md) management and contract management, the process is summarized by the following schedule:

centralizing-market-data-management-schedule

Results ✔️

✅ By setting up a professional Market Data Management organization, embedded in an environment of data governance benchmarks and best practices, the bank was able to achieve savings at a multiple of 3.5 of the Year-1 investments

✅ Moreover, ongoing, sustained cost controls enabled further optimization and tighter cost management, reducing waste of market data services (e.g. unused services, over-dimensioned products, unfavorable terms & conditions) at a rate of up to 5% per
annum

✅ The bank’s Market Data Management has become INSTITUTIONALISED