Achieving Market Data Integrity: A Critical Mission
Abstract
Celent Communications finds that while ensuring equity data integrity is a relatively expensive undertaking--costing over a million dollars for equity index data feeds overall--it is an extremely rewarding one, generating over five million dollars in annual revenues and loss reductions.
Given global trading volumes, complexities, and market vicissitudes, market data integrity is no longer merely nice to have—it is a "must-have." In a new report, entitled Achieving Market Data Integrity: A Critical Mission, Celent examines the rising status of equity market data integrity and its implications. The report summarizes interviews with market data experts, institutional traders, and leading money managers.
According to Alenka Grealish, senior analyst at Celent, "Despite technological advances, insufficient data-scrubbing by the sources, compounded by the continuing need to manually enter certain data (e.g., corporate actions), mean that errors and omissions continue to occur on a daily basis across both developed and emerging markets." Sang Lee, senior analyst and co-author adds, "As institutional traders’ quest to beat the market and ferret out market inefficiencies becomes more challenging, the role of equity data integrity in their trading strategies and model building has become paramount."