Rule 6 Objective: Leverage technology as the tool to facilitate data business, in its own right, rather then being hostage to legacy systems and processes thereby generating the flexibility necessary to adapt to future client needs
Why? The revolution in technology is impacting market data at all levels. By the time this written, let alone read, it will have moved inexorably forward. Understanding the impacts is key to accessibility and therefore usage, but it means using the right technology, not just any technology, and if the tools are not sufficient to do the job, then like Hercules when confronted by the Nemean Lion upgrade or switch to what works.
The Key factors are: •Having the right future looking technology strategies can make the difference between success and failure •Lightweight technologies are displacing heavy ‘legacy’ infrastructure, however for many larger financial institutions the process is slow, while smaller competitors the transition is moving quicker •Growth in processing and facilitation by third parties reduces in-house infrastructure but increases reliance upon communications and distribution •Expansion of FinTech, RegTech, WealthTech is driving greater data usage in more varied scenarios, often outside the data source owners and distributors line of sight •Traditional market data feeds and distribution channels are changing, breaking down and re-constructing •However, data licences especially for regulated entities, such as Exchanges, do not match capabilities in ‘The Cloud’ for ‘Big Data’ and other new game changing technologies •
This impacts all 6 areas of the data workflow:
Rule 6 Future Development
Data and technology are two different things, but symbiotic in nature, each drives the other constantly forward. In the past it was a circular flow, first data would advance then technology followed again by data, but now it is fundamentally different, both data and technology are advancing swiftly, and not necessarily together.
Often what seems to be technology problems are in reality, data issues. Equally legacy technology is often what holds up the efficient use of data. Technology must be data’s liberator, and that means being adaptive, delivering lightweight tech that does not get locked into a time snapshot straightjacket, but enables data to weave its magic.
How? •Reduce reliance upon legacy technologies and infrastructure •Switch to flexible lightweight tech that can be upgraded, easily, quickly, and preferably cheaply •Greater emphasis on core skill sets and expertise, through outsourcing of processing to specialists •Employ technology to access valuable but previously closed datasets because of their storage mediums, i.e. unstructured data in hardcopy format, and voice recordings •Leverage tech’s ability to increase accessibility to the data by expanding the potential audience base •Use tech to provide continuous metrics and analysis of production, quality control, distribution and usage
Getting Rule 6 right frees data to break down business barriers
Rules 7 & 8 to come!
Keiren Harris 21/03/2021
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