Market Data Strategies in Response to Reg NMS and MiFID (Strategy Focus)

Introduction

As Reg NMS and MiFID are set to alter the current market landscape, many financial organizations are using these mandates as impetus and catalysts for placing a great deal of emphasis on market data cost reduction, efficiency, strategy and profitability.

Scope

• Broker-dealers are preparing for upcoming surge in market data
• Market data cost reduction is a key priority
• Banks are looking to reduce cost burden by selling their own market data
• Focus is moving away from market data content and towards market data infrastructure.

Highlights

Bearing in mind that Reg NMS and MiFID will be fully enacted in October and November this year, respectively, some firms have been investing heavily over the last few months to set up their data infrastructure in order to begin testing in the new environments.

In order to fulfil best execution obligations under the new rules, banks will not only have to achieve best price for the order, but they will also have to make sure that they do not miss better opportunities. Hence, this is resulting in brokerages apportioning a significant amount of their IT budget into data handling technology.

Reasons to Purchase

• Vendors can tailor their offerings by assessing and analyzing which market data strategies are currently either in place or taking shape
• Solution providers can better align their go-to-market strategies with banks' market data strategies