Three questions for…
Sara B. Crowe, Managing Partner, BST America
What are the challenges the companies are facing as they manage the Market Data requirement and environment at their firm ?
The major challenge has always been and continues to be – assuring that they are delivering the best mix of market data product to support the business requirements of their firm. This includes the best content and products/tool kit as well as optimal delivery, including a high level of latency. They have to accomplish this within the operational/IT/audit policies & guidelines as well as the cost containment efforts currently in place – it is a constant juggle to keep everyone happy.
What are the major changes Marketdata directors have had to deal with over the last few years and what do you project going forward ?
They are always looking at new products and developing more efficient and faster delivery. Making product changes is a big deal and carry a lot of risk factors and often do not results in the projected user/business results or cost reductions. The market data sector is fluid and constant at the same time. Some of the changes are forced on the market place by the suppliers.
What are the current challenges with regulators and general compliance issues ?
Changes and /or new regulatory requirements are always high on the list of concerns as there are direct consequences for non compliance. There is generally a good amount of lead time to allow the companies to adapt their internal processes to meet the requirements – but, this requires them to move resources away from other projects and business needs. Again, it is a constant juggle of requirement, resources and money.
Marketdata directors also worry about general compliance – specifically usage and process - for the agreements they have in place with teir market data suppliers. No one wants to see their name in the media for unauthorized usage of vendor products. They need to be sure that they have the proper levels of internal usage polices and appropriate monitoring.
One good thing is that the management pays a lot of attention to regulatory reporting and compliance issues & concerns. They are fully aware of the associated risks and it is generally easier to get the right allocation of resource or funding.