Industry spending on consolidated market data feeds has steadily increased over the past five years with Thomson Reuters securing a 50% share of the growth.
A study authored by Greenwich Associates found spending on consolidated market data feeds has increased 6% year-on-year.
The industry spends more than $1.2 billion annually on data products, and increasing regulatory and compliance pressures will likely lead to this growth being sustained.
Head of Greenwich Associates market structure and technology practice Dan Connell wrote the study and said there is a real “thirst for market data”.
He added that the increase “is a response to new applications such as mobile services, new markets through global initiatives and the ever-expanding number of compliance requirements.”
Thomson Reuters has been deemed “the biggest winner from this growth”, as it has secured over 50% of market share.
Greenwich Associates expects Thomson Reuters to retain this share due to its “continued focus on coverage, speed of delivery, analytics, and value-added services such as data distribution platforms and permissioning systems.”
Bloomberg experienced the fastest year-on-year growth following heavy investments in its market data products.
Connell concluded that the largest firms often choose data providers based on the depth of offerings, such as accessing specific Asian markets alongside U.S. equity feeds.
For those firms focused on a particular market, “working with a local provider that specializes in that market and provides enhanced customer service can ultimately prove beneficial and cost-effective.”