Investment Services Data Market Structure
AbstractNew York, NY, USA June 9, 2008
Once considered an unattractive segment of the financial data market, investment services data is now the focus of many executives in the financial industry.
Investments without supporting data to help in trading and servicing are hard to imagine. The evolution and growth of the securities industry are direct results of the pervasiveness of investment data among market participants. In fact, market efficiency is predicated on the free flow and availability of data. Information technology is nothing but an enabler of data pervasiveness and accessibility.
Unlike the market for content targeted at the front office (market/pricing data), the market for data targeted at the middle and back offices (investment services data) has long been overlooked and regarded as secondary. This perspective, however, is gradually changing in the marketplace, and recent events have added momentum to what Celent identified as an important research topic in the middle of 2007.
In a new report, , Celent studies the market structure of investment services data from the perspective of five segments of market participants and aims at:
- Capturing and reporting on this economic model and the dynamics that govern the relationships among market participants.
Examining the decision-making process executives (distributors, redistributors, or end users) go through to source this data.
"Sourcing of investment services data by end users is a serious and complex decision. The quality and completeness of this data is as important as the latency and quality of market data," says Mayiz Habbal, Senior Vice President of Celent’s Securities & Investments Group and co-author of the report.
"Executives in the middle and back offices tasked with sourcing this data are becoming more selective and demanding as well as influential," he adds.
The 42-page report contains two figures and four tables. A table of contents is available online.
Members of Celent's Institutional Securities & Investments and Retail Securities & Investments research services can download the report electronically by clicking on the icon to the left. Non-members should contact firstname.lastname@example.org for more information.
Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].
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Table of ContentsNew York, NY, USA June 9, 2008
|Investment Services Data||5|
|Use of Investment Services Data||8|
|Sources of Content||9|
|Primary Content Providers||13|
|Nature of Content||13|
|Market Behavior of Primary Content Providers||14|
|Primary Content Providers Challenges||15|
|Distribution or Aggregators||17|
|Types of Aggregators||17|
|Aggregators' Practices and Relationships||18|
|Market Behavior of Distributors||19|
|Redistributors - End Users||20|
|Types of Redistributors||20|
|Correspondent Clearing Service Providers||24|
|Redistributors - Software Vendors||26|
|Portfolio/Trade Order Management Systems||26|
|Compliance/Risk Management Systems||26|
|Portfolio/Investment Accounting Systems||27|
|Market Behavior of Software Vendors||27|
|Trends in Trading Systems||28|
|Market Structure and Dynamics||30|
|Relationships Among Market Participants||30|
|Conclusions Regarding the Data Marketplace||31|
|Recommendations for Primary Content Providers||33|