Develop a catalogue of market data cost saving and optimization initiatives

The catalogue, the associated opportunities to reduce costs and to right-size the provision of market data services across the firm, will contain streams that have proven successful during projects carried out by the consultants of MDS at Work during the last 20 years.

 

Our approach

Review your market data spend and cost drivers

  • Market data inventory – Products & Services
  • Vendor contracts – Terms & Conditions
  • Usage

    Example

Bloomberg terminal distribution

Bloomberg terminal distribution

Good: most buy-side firms are having more expensive Bloomberg terminals to manage their assets.

FactSet terminal distribution

Facset terminal distribution

Average: large number of FactSet Workstations, favorable cost per user, but limiting the potential for further terminal cost reductions.

Data feeds

Data feeds

Average-Good: in general the number of data feed providers at buy-side firms is between 3-5.

Credit Rating Agencies

Credit Rating Agencies

Good: cost is lower than compared to peers.

Define catalogue of cost saving and optimization initiatives

Project Stream Total net spend
p.a.
% Minimum
range
% Maximum
range
Market Data Terminal Landscape
Optimization
€ 7.900.000 5% € 395.000 20% € 1.580.000
Market data feeds: pricing and
reference data
€ 2.850.000 5% € 142.500 10% € 285.000
Exchange fees € 570.000 5% € 28.500 15% € 85.500
Research subscriptions: CRAs and brokers € 765.000 5% € 38.250 15% € 114.750
Specialist data & news services € 149.000 15% € 22.350 30% € 44.700
Broker data € 295.000 10% € 28.026 20% € 59.000
Total € 12.529.000 5% € 645.626 17% € 2.168.950

Implement selected optimization initiatives

With years of experience MDS at Work consultants are in a good position to support your organization with the implementation of optimization initiatives. Execution of savings initiatives will lead to sustained savings over time. It is important to include these initiatives as part of the annual plan.


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