Simplifying Market Data Management – How Wealth Managers Can Better Handle the Market Data Explosion

Market data is an integral component to critical wealth management systems across the front-, middle- and back-offices.  From investment research to portfolio reporting, compliance and risk management to online customer portals, market data drives decision-making and provides enhanced transparency.

Managing market data across all of these disparate systems has always been a challenge, but has become increasingly complex in recent years due to the explosive increase in the volume of market data. The daily flood of market data shows no sign of slowing down—in fact, experts project it to accelerate in the coming years. This means that market data management solutions must easily scale to meet the needs of tomorrow.

At the same time, data management has taken on an elevated priority for wealth management firms, moving from what was once primarily an IT issue to a priority vital to the entire enterprise.  Among the forces that are driving strategic investment in data management are the growing number of applications that require market data, the need for scalability and improved operational efficiency, increasing regulatory requirements, and potential cost savings.

Market data management today

So how do wealth management firms currently manage market data? The answer varies from firm to firm, but for those that bring external market data in house via traditional data feeds or flat files, there’s a common theme of complexity.  Ingesting market data from datafeeds and populating the wide variety of end user applications requires a data management infrastructure, along with dedicated databases, software, and maintenance.

For larger firms that have built these capabilities organically over time, there is often overlap, with different stakeholders building siloed market data management systems to feed their own applications.  The resulting patchwork of systems is an inefficient and expensive boondoggle.  Data is presented inconsistently across the enterprise, and no one understands what data is being used or who’s using it.

How the cloud can streamline market data management

On a basic level, a cloud-based solution simplifies market data management systems by hosting market data offsite and making it available on demand within any number of internal applications. But there’s more to it than that. With a cloud-based market data solution, firms bypass all of the infrastructure headaches and expenses associated with traditional datafeeds.  The complexities of integrating traditional datafeeds —flat file processing, data cleansing and parsing, network infrastructure, and ongoing system maintenance—disappear with cloud APIs that deliver market data directly to end-user applications. This reduces the burden on in-house market data management systems and enables firms to reallocate resources to extracting value from the data.

In addition, a cloud-based market data solution provides superior tracking of data usage, enabling transparency into what data is being used and by whom.  This allows wealth managers to better optimize their market data management systems and ensure that they’re not overspending on getting the right data to the right applications.

About Xignite

Xignite is the leading financial market data cloud provider, offering more than 50 financial cloud APIs and fulfilling more than five billion service requests per month for real-time, historical and reference data covering global equities, commodities, currencies, options, fixed income, mutual funds, derivatives and OTC instruments. The Xignite market data cloud powers mission-critical applications for financial services front, middle and back office, financial websites, investor relations, corporate ERP and BI, e-commerce, and mobile for more than 900 clients in 47 countries, including Citi, GE, Wells Fargo, ING, BNY Mellon, Natixis, Forbes.com, SeekingAlpha, ExxonMobil, Starbucks, Netsuite, and Barrick Gold. The award-winning XigniteOnDemand cloud platform also provides new online channels for stock exchanges, trading venues, OTC brokers and market data originators including CME Group, NASDAQ OMX, BGCantor and Pearson. For more information, please visit www.xignite.com or call 1-866-XML-SOAP.  

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