Are onsite Market Data Platforms obsolete?

Mauricio Gonzalez Evans

CEO BCCG

LinkedIn profile : linkedin.com/in/mauricio-g-a7ab21238

September 17, 2024

Over the past two years we had the opportunity to talk to many different clients about their current market data platforms, i.e. how they are used, implemented and serviced, and what the problems are they must deal with on a daily basis.

We also talked to some clients that do not have any platform. All data is delivered via direct connections to applications and then distributed by the application backend, in fact acting as a distribution platform in a very limited, dedicated manner.

The prevailing opinion on data delivery and distribution was: Why do we even have to deal with the technical, administrative and legal complexity of running and maintaining such a system?

The cloud idea, although not particularly attractive for banks according to those involved, has given impetus to the idea of freeing themselves from the burden of operating their own market data platform.

The use of market data is fraught with so many pitfalls that it is no longer sufficient to operate suitable technical solutions. Complicated authorization and reporting procedures, which are subject to constant changes and are also usually managed by completely non-technical departments, must complement the technically sophisticated solutions for receiving, normalizing, caching and distributing the market data in order to meet all technical and legal requirements.

In all discussions, we also found that, although one or more instances of a market data platform are operated, a large number of applications still obtain data directly from market data providers, usually for the simple reason that no connector exists for the specific platform or that the platform supplier is the same one that also supplies data and for this reason makes it difficult to connect "external" data to the platform in a form that is no longer cost-effective.

So, the question arises: Is it possible to obtain market data from different suppliers as a comprehensive service, i.e. to consume market data from all suppliers via a uniform interface and at the same time outsource all tasks associated with operation and administration?

The answer to this question is complicated. In general, one can say that such a solution is not feasible with the prevailing technology, processes and, in particular, the existing skillset.

A market data as a service solution requires cloud-native technical components and, even if not operated directly in the cloud, cloud infrastructure such as OpenShift, particularly because of the lean, automated processes introduced by cloud technology. A market data platform such as the ONE Platform, which has all the necessary technical and administrative components for multi-vendor operation and reporting and is also cloud-native, can be set up individually for each customer by companies specializing in market data support, such as CJC, into a tailor-made market data as a service solution.

BCC Group and CJC assist clients with all vendor connectivity and legacy application connectivity issues and help make the transformation to a modern affordable outsourced solution a reality.

OPaaS, ONE Platform as a Service, offers all the migration assistance needed to seamlessly integrate legacy applications that only support an RFA/EMA/UPA connection (ELISA). ELISA offers the unique opportunity to supply such legacy applications with data from completely new data suppliers, e.g. ICE, FACTSET, IRESS and many others, thanks to the multi-vendor properties of the platform.

To answer the initial question, I would like to say that market data platforms that are not operated on the basis of cloud technology, are not cloud-native and are not multi-vendor capable should be replaced. The market needs flexible, open, easy-to-operate, primarily inexpensive outsourceable solutions that give customers the opportunity to easily connect vendors and, in particular, to easily replace them.

OPaaS - ONE Platform as a service.

BCC Group / CJC