The value of market and transactional data is nothing new. It is the lifeblood of financial markets and an integral component in every market participant’s toolkit. Every institution uses its data differently – but what unites many of them is that they are not fully maximising its value.
In the FICC markets, this is particularly apparent. All FICC businesses are under unparalleled pressure due to the changing risk conditions and scrutiny that has increased largely as a result of the constraints of new regulatory initiatives.
Firms across the sell-side, buy-side as well as exchanges and CCPs, are all struggling to unlock the value in their data to help them to tackle these critical challenges. Thankfully, there is a solution: advanced analytics.
However, it’s not quite as simple as flicking a switch and suddenly extracting actionable insight from your data. All analytics programmes must begin with putting fundamental data foundations in place. Without the right preparatory work, valuable insights may remain inaccessible.
Quality over quantity is also key. Consuming vast swathes of market data is no longer the be-all and end-all of data usage. Instead, intelligent data analytics is based around the premise that less data that is more comprehensive is better than vast quantities that lack value.
Despite this, some market data vendors are still trying to sell unyielding swollen data sets that are incoherent, unwieldy and require huge amounts of time to extract anything of any value.
For a bank to truly transform its FICC business, it must turn its big data into smart data. But how can this be achieved?