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L E A D E R S H I P
the largest data providers will
still act as the market’s de facto
aggregators. In this case, cloud
computing and easier access to
data will be critical capabilities.
Data and analytics go hand in
hand
For investing and measuring
execution quality, the evolution
of analytics is just as critical as
acquiring the data itself. In other
words, finding data is not enough.
You have to put it to work — to
interpret, analyze and utilize
existing, new and unstructured
data across trading workflows.
As a result, 57 percent of capital
markets professionals expect
to spend more time analyzing
data, and 74 percent believe data
analysis to be the most important
skill that will be required to work
on the future trading desk.
However, spending time with
data will mean different things to
different people and firms.
Sell-side trading desks will
examine customer trading
patterns more systematically
to help manage relationships,
26 // TheTRADE // Spring 2020
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R E F I N I T I V ]
execute algorithms using artificial
intelligence to source liquidity,
and digitally communicate with
clients more and more.
Those on the buy-side, like
asset managers and hedge funds,
will continue to use data to find
investment opportunities, more
accurately price illiquid assets,
and manage risk.
The power of alternative data
Even as we highlight the value of
data, it’s important to recognize
that not all data is created equal.
The term encompasses many
different types, from market
data to reference data. But today,
alternative data tops the list of
importance.
An overwhelming 95 percent
of trading professionals believe
alternative data will become more
valuable to the trading process in
the coming years.
This previously non-existent or
largely under-utilized data source
provides trading or investing
signals that were once analyzed
alongside market movements but
were not considered relevant to
trading or investing.
However, alternative data
will only be useful if traders
trust the source, driving home
the importance of investment,
accuracy and speed.
The path ahead for trading
workflows
Data is not simply a buzzword.
If gathered correctly and
interpreted accurately, it’s the
path forward for trading.
At Refinitiv, we remain
focused on creating value for
clients through data that spans
the trading workflow, making
it easier for traders to see,
analyze and act on insight and
opportunity.
The changes in data and
technology identified in these
first two reports are driving an
evolution in trading roles and
relationships. Our final report
will examine these shifts to define
critical skills for the trading desk
of the future.
To read the full report, go to
refinitiv.com/redefiningdata
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