New Research: Advanced Technologies Revolutionizing the Market Data Landscape
Zurich, September 12, 2024 – Technology is now a key factor shaping decisions regarding market data across both the buy and sell sides. This is the key finding of a new study published today and conducted by global financial information provider SIX and the Greenwich Union.
The market data survey was conducted from April to July 2024 and surveyed 67 respondents from asset managers, asset managers, and securities dealers in the US, UK, Europe, and Asia. This is his second in a series, first published in 2023, aimed at providing a deeper understanding of market data consumption trends and challenges.
Adoption of cloud technology has increased significantly, with half of respondents now choosing to receive their data on both public and private cloud hosting applications, up from a 30% adoption rate last year. I am. Applications of other advanced technologies, including API delivery formats, are also set to become more prevalent, with 70% of institutions expecting further migration to APIs over the next three to five years. Looking ahead, investors expect to leverage emerging technologies to an incredibly powerful level, with three-quarters of respondents citing artificial intelligence ( AI)/machine learning (ML).
This increased interest compared to last year can be attributed to real-time data becoming a competitive differentiator for market participants. Most respondents rely on multiple frequency data such as delayed data, historical data, and end-of-day data, but growing market demand for real-time information is driving adoption of more advanced technologies. It has been.
Unsurprisingly, spending on market data is expected to increase for the second year in a row, driven by increased budgets allocated to stocks, indexes, fixed income, and ESG datasets. For some market participants, these increases could exceed 16%. However, given trends emerging in 2023, survey participants prioritize data quality, accuracy, and reliability over all other considerations when deciding on market data type, frequency, and vendor. Continuing.
Commenting on the findings, Roy Kirby, Head of Core Products for Financial Information at SIX, said: Although its benefits are well known, the way market data is delivered and accessed is changing rapidly over the years. Market data use cases are numerous and constantly evolving, but one thing is clear: That means access to high-quality, timely data is critical. No benefit can be realized without a solid data foundation to build upon. This is where cloud and APIs will add more value to market participants and ultimately drive growth. ”
“High-quality data is paramount to any type of data use, no matter how innovative it is. The use of market data user-generated AI is increasingly evident, especially in making and supporting investment decisions. “This development is accentuated by a shift to higher data frequency and more efficient data distribution,” said Coalition Greenwich Market Structure & Technology Senior Analyst and co-author of the paper. David Easthope added.
