Data Cost Optimization

Financial services firms are faced with a triple challenge: efficiently servicing the business by easily onboarding data sources, ensuring regulatory compliance on process scrutiny and, managing and controlling data costs – which often means navigating an array of complex commercial models, data licensing and usage agreements. Transparency and controls on data consumption and usage has become a critical capability.

42B$

total global market data spend in 2023 according to study: Financial Market Data/Analysis Global Share & Segment Sizing 2023, Burton Taylor

+12.4%

increase of market data spend in 2023. Continuous trend upwards. Advanced Technology greatest influence

100's

of financial products used, inevitable complex licensing policies and transparency challenges.

The need for transparency

Firms are faced with strict licensing policies and need to be able to demonstrate compliance with content license requirements. Being able to demonstrate where licensed data goes also helps to understand total consumption and allows the firm to make the best data purchasing decisions. Licensing agreements are complex and often include number of end-users, use cases, downstream systems, geographies – and this can be down to the individual field level. The ability to clearly pinpoint all data flows also makes sure decisions and data points can always be explained – whether for risk valuation, operations, compliance or post-trade reporting.

Tracking consumption

When a consumer – application or individual – requests market or reference data, the request is logged and Alveo checks if it can be serviced within specified boundary conditions. If so, then the data is immediately returned. If the request cannot be serviced, it is requested from one or more external sources. The data is received from vendors, is quality proofed and cross-referenced, and subsequently distributed. Vendor requests and cost, as well as internal cost allocation, are completely transparent. Requests are checked against limits and if thresholds are breached can be blocked, and an alert is sent.

The Optimon solution

Monitors and analyses data spend over time to optimize spend and maximize Data ROI and leverages data already purchased
Eliminates unnecessary intra-day per-security requests and optimizes these calls through field analysis and commercial model optimization
Provides proactive real-time alerts for non-compliant data calls or costly requests with strong controls
Optimizes vendor commercials and provides data vendor invoice re-calculation and reconciliation
Provides detailed and evidence-based reporting of usage per requestor
Identifies sourcing redundancies

Our unique structured approach to securing high-quality market data and validated price information has proven to be highly effective for many of the world’s most notable financial services firms.