Many financial institutions do not have a clear and present overview of market data usage in their applications, and even less of an exhaustive market data entitlement on user level. Hence the risk of penalties and relicensing due to non-compliant market data usage is substantial. Furthermore it can be expected that unnecessarily incurred costs due to inadequate data usage which is not adapted to the actual needs of the business persist. Financial risks can sum up to a double-digit millions euro in larger institutions. Due to current cost pressure it seems to be negligent for management to not actively counter these risks with corrective measures.
The current situation in lots of financial institutions regarding compliant market data usage and effective cost control within IT applications is characterised by the following challenges:
Due to these challenges it needs quite some time to get risks and costs under control in a sustainable way. A first estimation of risks and cost savings potentials is needed initially.
The Market Data Compliance and Cost Quick Check provides a brief overview of potential risks, which can emerge from violations of contracts with exchanges and vendors as well as a brief overview of first cost savings potentials, based on manageable effort.