FEAS Data Strategy Training 21 May 2010 Tuesday, 6 April 2010
Market Data has immense value and could form a significant part of your group revenues. Created through exchange activities, markets could not maintain efficiency without price discovery and transparency. This training day aims to provide information on the key aspects of creating and building a successful, profitable market data business, providing critical information and products to end-users who need this data to maintain and continue their trading activities.
1.0 The Business of Market Data.
1.1 Why be in the Market Data Business?
– What is the market data business?
– Setting your market data business objectives.
– What is the value of your market data?
1.2 Understanding your Marketplace.
– Who uses Market Data and why?
– Understanding your clients.
– Same data, multiple usages. Understanding how your clients use it.
– Ensuring Quality, Accuracy and Timeliness.
– Importance of common standards. Issues impacting exchanges co-operating.
2.0 The Mechanics of the Market Data Business.
2.1 Distribution of Data
– Wholesale or direct – what’s the best way to reach your end-users?
– End-user distribution, both internal and external.
– Right and restrictions to consider.
2.2 Working with the Vendors
– Vendor network – how to best leverage your vendors distribution network? Are some vendors better suited to your exchange than others?
– The commercial policy that works best for you – licence fees? Revenue shares?
– How to negotiate fees with your vendors.
– Vendor product pitfalls to be aware of, e.g. Thomson Reuters Datascope.
– Reporting Tools.
– With vendors and end-users for distribution, product creation and usage rights.
– Permissioning and reporting requirements, including product coding.
– Definitions and terminology.
2.4 Pricing Data
– Data products already available.
– Value-added data products.
– Creation of a product suite for each end-user type.
– Distinct data product collaborations.
2.5 Data Usage Policies
– Distribution rights for end-users (internal and external) and data vendors.
– Licensing the creation and potential distribution of value-added data products.
– Non display usage including algorithmic trading/black boxes.
– Data storage rights.
– Commercialisation rights.
– Maintaining data IPRs.