Market data is a crucial and expensive success factor regarding the implementation of current business models of financial institutions. An efficient contract and license management within Strategic Market Data Management therefore plays an important role in ensuring positive economic results for banks and asset management institutions.
Challenges in efficiently managing contracts & licenses have been strongly increasing over the last years:
- The number of service offerings from market data providers have grown strongly especially with a lot of newly introduced contract and license types (e.g. from exchanges, brokers, index providers).
Commercial models have become more complex, thus requiring more know-how and expert knowledge in contract and license management.
- New business units, restructurings and mergers generate additional need for adjustment contract- and license-wise
- New internal and regulatory requirements – especially regarding risk assessment – require a more extensive market data provision and thus more effort on the contract and license side
Organisational structure and processes in contract and license management have quite often not been adapted to the new challenges. Missing or poorly implemented processes result in lack of transparency, under-usage of existing contracts and licenses as well as cost-inefficiency. Causes are, for example, decentralised procurement processes per business unit or poorly negotiated contracts and licenses whereby volume effects/economies of scale during vendor negotiations were not realised. Missing or faulty feedback processes can lead to completely missing contracts and therefore to severe breaches. Moreover, legal restructurings/reorganisations can also lead to non-compliant market data usage.
The objective is to achieve competitive and cost advantage by establishment of an efficient contract and license
Overall optimisation of contract situation
Topics-related optimisation of contracts
Be GmbH Service Offerings
Optimisation contract management
- Support with governance, administration and negotiations of contracts with market and reference data providers on a central level (incl. clarification of legal issues)
- Adjustment of contracts to the actual needs based on a feedback process with business units as well as establishment of a Contract Renewal Process
- Bundling and optimisation of projects beyond local levels (on a regional or global level)
- Clarification and optimisation of contracts based on actual needs or along special topics or requirements, especially for usage of market data in applications like broker or exchanges data (Display/Non Display) or for 3rd Party Services / specialist data providers
Establishing an active license management
- Governance and optimisation of usage of contracts and licenses for single users (swaps, buyouts), systems and users behind systems
- Demand / Order / Change Management: need oriented ordering, changes and cancellations of market data services and licenses
- Demand-based de-/permissioning of single services (e.g. real-time exchanges via DACS/BBG web portal)
Your benefits from more efficient contract and license management
- Complete transparency of all group-wide contracts and liceneses, of upcoming changes and novelties
- Groupe-wide realisation of savings on a contract and license level, avoidance of breaches and penalties
- Sensibilisation of users, application owners and management regarding market data cost structures and commercial/license models
- Optimised processes in contract and license management
Be GmbH success factors in efficient contract and license management
- Deep market and reference data Know-How, large network and extensive knowledge of providers
- Expertise with contract and license management within international financial institutions
- Expertise with strategic purchasing and contract negotiations