A vendor of financial data provides market data for financial firms, traders, and investors. Distributed data is collected from sources such as stock bait, brokerage and agent desk or regulatory filing (eg SEC filing).
Video Financial data vendor
Histori
Financial data vendors have been in stock as long as financial data is available. The first technology that allowed distributed data vendors was a ticker recording that began in the 1870s. Financial data includes "pre-trade" such as bid/ask data required to fix the price of financial instruments and post-trade data such as current trading prices and other transaction data.
From ticker tapes to television cameras, from databases to websites, this multibillion-dollar industry provides data for trading and consumer space. Tape paper tickers became obsolete in the 1960s, as television and computers were increasingly being used to transmit financial information. The stock ticker concept remains alive, however, in rolling electronic tickers seen on the wall brokers and on news channels and television finances.
Because financial investment is needed to provide needed services, the industry is becoming more consolidated, but by 2004 it was estimated that the industry was beginning to break up.
Maps Financial data vendor
Industry size
According to Burton-Taylor's 2009 report, the Market Data industry came out in 2009 for US $ 22.68 billion after closing in 2008 of US $ 23.01 billion. In 2009, Thomson Reuters and Bloomberg's market share was almost evenly distributed, at 29.4% and 29.2%, respectively.
The four largest financial data vendors represent the tip of USD 15,222 billion from the huge global market (2008 figures) and employ tens of thousands of people.
Data type
There are many different types of instruments (including stocks, bonds, funds, options, futures, currencies, etc.) and hundreds of different markets for investment, leading to a huge and difficult to define universe of data.
The types of data offered vary by vendor, and most usually include information about entities (companies) and instruments (stocks, bonds, etc.) that may be issued by the company. Typically, price data is sold separately from other related data, such as company actions and events, valuation information, fundamental data including company performance and reference data on the entity and the instrument itself.
In addition to market price data, there is data known as market reference data, such as the ticker name, which describes securities, commodities, and transactions.
Services offered
Much of the market differentiation between competitors is based on the following combinations:
- Frequency of delivery - Data can be updated in Real-Time, Pending, Continued or End of Day
- Delivery delays - vendors offer different amounts of data latency, with low latency usually becoming more expensive and more complex. Individual vendors can offer different products with different latencies.
- Delivery method - Data sent either in streaming format, or as a snapshot file of the streamed data, or as an "end of day" file indicating a position on the business closure of a particular market or region
- Transport delivery - Data can be sent via Broadcast, Multicast, Satellite, Private Line, VPN or Internet
- Delivery format - Data can be coded in a large way to optimize performance, or it can be left in a simple format to simplify databinding
- Normalization and Data Models - Vendors gather from sources around the world and then translate all of these formats into a single format (by vendor or product) for consumption either by financial data processors or by end users. Each vendor usually has a different way of modeling financial data.
- Reliability - High data availability is a major concern in financial markets
- Value Added Service - Data values ​​can be improved by adding related services such as listing information, data sharing, fundamental data, time series, historical data, etc.
- Local experience - Larger data vendors have sales and service offices and data centers around the globe in key financial centers in the US, Europe and Asia. This allows their customers to access local expertise without having to have a local presence.
Global properties
Many vendors start as local companies, serving their own local markets. However, through mergers and acquisitions and in response to the increasing globalization of world markets, many vendors are now describing themselves as global.
List of important financial data vendors
References
Source of the article : Wikipedia
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