Paul Humphrey, chief executive officer, BMLL Technologies
Back in 2020, we said the race for speed was over, and the global race for quality data and analytics was on. We see this continuing, and the industry-wide lack of quant resources – critical for researching, analysing and understanding market behaviour – adds both complexity and urgency to this race. The quest for quality historical market data, without gaps and spikes, will intensify. The market has been dominated by real-time firms whose historical product is little more than their exhaust! If historical content is driving decision-making, then quality becomes the most important aspect, whatever your firm’s level of sophistication.
Market participants need global data-driven content to enhance their own products and gain deeper understanding of market shifts and liquidity dynamics, and to identify opportunities for better trading outcomes. Crucially, they need their data to be ready for use without the burden of data engineering and infrastructure on their P&L. We expect an acceleration in firms moving away from heavily investing in aggregating, owning, storing and engineering these data sets, time and time again when high-quality, curated and maintained historical data and analytics are available for all. Market participants will differentiate themselves by what they do with data, not by owning it!
Ray Tierney, president of Broadridge Trading and Connectivity Solutions (BTCS)
Data driven thinking and the integration of digital technology will reshape industries and propel companies forward heading into 2024. As data driven and digital technologies continue to become more integrated into the market, managers at all levels need to keep these factors in mind when they develop strategies, allocate resources and set goals.
The combination of data driven thinking and the integration of digital technology necessitates a cultural change. It starts at the top and requires organisations to continually challenge the status quo, experiment, and get comfortable with failure. Organisations must rethink old operating models and test new ones to become more agile in their ability to respond to customers and rivals. The overarching trend is a shift that prioritises data and analytics, automation, and AI-assisted technologies that will fundamentally change how organisations operate and deliver value to customers.
Michelle Tran, president, TMX Datalinx
Demand for high-quality and differentiated data products will intensify in 2024. High interest rates, trading volume volatility and the overall uncertainty that impacted markets in 2023 and led to widespread corporate cost-cutting are likely to continue into 2024. As a result, investment firms will employ a more stringent vetting process as they evaluate their data needs. There will be a focus on reliable and proven data sets that both optimise returns while reducing risk, and that are applicable to portfolios across many asset types and multiple geographies.
We anticipate equity and options traders will lean into quality core data sets such as forward-looking corporate events data, and robust alternative data sets around ESG and private assets. On the fixed income front, the rates transition happening globally will lead market participants to look for benchmarks that streamline the transition to new reference rates. Information businesses will need to tightly align their data strategy with these client needs. This means having a diversified data strategy that includes investment, innovation, expansion, partnerships and acquisitions, to ensure that we continue to support our clients’ entire investment lifecycle needs.
Karen Geiger, co-general manager, SS&C Wealth & Investment Technologies
The key to navigating 2024 will be access to data you can trust. There will be an intense focus on connecting the front- and back-office through modern technology. Enabling real-time data access across the firm is the goal. The increased demand for real-time data comes from two ongoing trends: regulation and asset class diversification. Preparing for T+1 is a priority for all market participants. To prepare, firms will need access to the data even faster than today. Ahead of the May 2024 deadline, more are tapping outsourced specialists for help.
You will also continue to see a push to modernise the loan market, whether through digitised loan data or electronic trading. As firms continue to diversify into this high-yield asset class, there will be a desire to create efficiencies and automate paper-based, manual market processes. Machine learning can help alleviate operational headaches and accelerate processing and settlement times.
Every asset manager is looking to rationalise its technology footprint and spend. The aim in 2024 isn’t merely tech consolidation for consolidation’s sake, it’s about collapsing silos and creating a connected investing experience. Firms will be looking for interoperable solutions with seamless and automated access to real-time data to make fast and informed investment decisions.