Consolidated Market Data Feeds: Alive and Well in an Algo Age
Report Summary
Consolidated Market Data Feeds: Alive and Well in an Algo Age
Despite the popularity of direct market data, the shift toward electronic trading is expanding opportunities for consolidated market data feeds.
Boston, October 2, 2012 – A new report from Aite Group examines consolidated market data feeds from the perspective of consolidated market data consumers, including drivers, challenges, and customer criteria for vendor selection. The report is based on Q2 and Q3 2012 Aite Group interviews with 38 executives from around the world responsible for the evaluation and selection of consolidated market data feeds for their respective firms.
The market for consolidated feeds is strong, and the number of firms providing consolidated data has grown. Moreover, Aite Group expects that competition will continue growing as better technology lowers the barriers to entry. Firms that leverage consolidated data do so for a number of reasons, including the high cost of the infrastructure that maintains direct feeds, the complexity of managing multiple feeds, the maintenance associated with managing infrastructure and constant changes from feed providers, and the challenge of matching the various symbologies.
“Given the significant growth of direct market data feed usage, one might assume that consolidated feeds are dying, especially given the decline of terminals as primary trading vehicles,” says Adam Honoré, research director with Aite Group and co-author of this report. “While direct feeds certainly serve a certain segment of traders, consolidated feeds are generally better for those moving into new geographies and asset classes.”
This 13-page Impact Note contains 10 figures. Clients of Aite Group’s Institutional Securities & Investments service can download the report.