We noticed two interesting pieces this week, both related to the growth of data and how new sources of data are being brought to the market.
Firstly, Markets Media highlighted that a key demand of market-wide regulation, such as MiFID II and Dodd-Frank, is the need for increased transparency.
Financial institutions are faced with the seemingly opposing demands of generating trading profits, whilst being required to reduce costs, manage risks and comply with regulatory obligations. How do they achieve this? The answer is Data…..more and more data.
“’Market trading strategies are increasing in complexity. The only way to continue to evolve that complexity is to continue to provide a variety of data inputs,’ said Lynn Martin, president and COO at ICE Data Services.”
“Looking to the future, Martin expects that ICE Data Services will add more alternative data content as well as integrate artificial intelligence into its desktop and tool offerings.”
Even the Winklevoss Twins are getting in on the act. Remember them?
The Wall Street Journal published an article about CBOE, the US Options Exchange, partnering with Cameron and Tyler Winklevoss. The partnership will enable CBOE to use trading data from Gemini Trust, the virtual-currency exchange, to power its bitcoin derivatives and indices.
Our view is that more data is being made available and data consumption will continue to grow. Making the data available is only half of the story. The other half is how financial institutions make use of it. Capturing and normalising the data is the first step, enabling internal processes to get to work.
The Markets Media piece is available at https://marketsmedia.com/transparency-data/
The WSJ piece is available at https://www.wsj.com/articles/cboe-teams-up-with-winklevoss-twins-for-bitcoin-data-1501675200