It is our belief is that the whole of the capital markets industry is at a turning point. The good times have been replaced by macro-economic drift and seemingly inexorable regulatory road-maps upended by democratic movements that potentially throw the whole jigsaw puzzle up in the air. Where does it land? It lands in an environment where financial markets - once the master users of technology themselves - are finding their business models threatened by technology itself.
Against this background the market data sector has to move forward to keep up with the changes that technology is bringing to their clients.
Where once it was possible to instantly keep track of where market data was being used - one simply counted the number of terminal screens – now the majority of market data is being consumed unseen, invisible, often undetectable applications and algorithms.
As a result, a growing “iceberg” of fee-liable data is being consumed inside financial exchange clients leading to inadvertent and unknown liabilities. All the while financial exchanges being aware of the issue, raise prices to compensate for the perceived revenue lost.
There is, as we see it, a potential for a perpetual divergence in the market. The iceberg going in one direction and market data prices going in the other. The signs are that situation is leading to significantly increased tensions between the two sides of the industry. It is a situation that cannot last.
And that is where Ballintrae steps in. It is our mission to develop technologies and services that bring the two sides closer together.
By automating the administration of market data management on the client side and providing a central industry utility for the financial exchanges, Ballintrae can lower costs for the clients and uncover more reliable and sustainable revenues for financial exchanges.
Ballintrae is developing a fully integrated suite of market data management tools as a first step. It will lead to the ability for clients to relieve themselves of the burden of management entirely and so radically remove and reduce costs.
As Ballintrae becomes the Market Data Utility, financial exchanges will be able to publish rules, regulations and prices, issue change notifications with the full certainty that their clients will neither misunderstand, misuse or simply miss the changes. The savings in terms of cost, time and otherwise lost revenue will be immense.