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TABB Group Estimates Global Real-Time Market Data (GRTMD) Spending Rose 8% in 2014 to Nearly $13 Billion
[June 22, 2015]

TABB Group Estimates Global Real-Time Market Data (GRTMD) Spending Rose 8% in 2014 to Nearly $13 Billion


Despite reports to the contrary citing pressures on spending for market data and technology since the financial crisis, TABB Group reports that the purchase of global real-time market data (GRTMD), supporting datasets and the development of improved risk analytics has actually continued to grow, some even at a robust pace.

According to TABB's "Enhanced Selection Criteria: New Implications for Data Solution Buyers" - an 18-page, 8-exhibit report that details the current market data and related infrastructure landscape, factors and selection criteria leading to a re-alignment of buyers and sellers of market data solutions - global real-time market data (GRTMD) spending for 2014 is estimated to have risen 8% to $12.978 billion with spending on screens, consolidated feeds and ultra-low latency (ULL) feeds having grown 6%, 23% and 7.5%, respectively.

During the past two years of GRTMD spending growth, TABB has seen the rise of what it calls "a battle for the middle." As prop shops and other specialized trading firms continue to pair up with high-performance, latency-sensitive vendor specialists, Paul Rowady, TABB's director of Data and Analytics (DnA) research, believes that tier 1 banks, the largest asset managers and premier hedge funds and other global firm will continue to pair up mainly with enterprise market data ecosystem providers ( Thomson (News - Alert) Reuters and Bloomberg), and supplement with domain specialists (S&P Capital IQ, Interactive Data, Markit and Activ Financial) and solution providers for high-performance situations. "These are the extremes, the tails of the 'solution counterparty' bell curve. In the middle is everyone else, both buyers and sellers of market data solutions, where we believe there's strong potential for many market data buyers to make new solution-provider selections."



As a result, Rowady expects more investment in data overall, global market data, in particular, driven by ongoing regulation, new trading, investment and risk strategies and a focus on total cost of ownership (TCO). In the final analysis, he says, it's no longer a foregone conclusion that tier-1 solution sellers are the default selection option. In many cases they still are, but TABB Group has concluded that tier 2-buyers (by scale and/or workflow criticality) and other "higher-in-the-stack" content and analytics providers likely have viable alternatives that they may not be considering properly. "Chances are some of today's tier-2 buyers and sellers could become tomorrow's tier 1's. This is true of both the buyers and sellers of market data and related infrastructure solutions."

The report is available for download by Research Alliance DnA clients and media at http://www.tabbgroup.com/ Login.aspx. For the Executive Summary or to buy the report, write to [email protected].


About TABB Group

TABB Group is the research and consulting firm focused exclusively on capital markets, using the interview-based, "first-person knowledge" research methodology developed by Larry Tabb.


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