[ T H O U G H T
In the second of three reports
on the trading desk of the future,
Refinitiv partners with Greenwich
Associates to explore data’s impact
on financial markets over the next
three to five years, including which
types of data will be most valuable,
who will provide that data, and
how traders expect to use it.
The value of data in financial
markets
With an overwhelming 85
percent of banks, investors and
capital markets service providers
planning to increase spending on
data management, the value of
L E A D E R S H I P
data in financial markets is clearly
increasing.
The quantity and velocity of
market data will continue to grow
alongside trading volumes and the
number of tradable instruments.
At the same time, tolerance for
errors and acceptable latency for
delivering that data will drop.
Large investments in market
data infrastructure by those up
and down the value chain must
continue for the foreseeable
future.
Where will this data come from?
In the search for external data,
41 percent of market participants
believe that large market data
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R E F I N I T I V ]
aggregators, like Refinitiv, will
continue to act as the primary
source of data for trading desks
— beating out all other potential
providers.
Why? Because they have the
power to find, ingest, normalize,
aggregate and then redistribute
data around the world with
high degrees of accuracy, and
latency sometimes counted in
microseconds.
With so much data to absorb,
large financial institutions prefer
to get most, if not all, of their
information from a single place.
Even as the importance and
diversity of alternative data grows,
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