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  1. 1. Pricing & Reference Data MANAGED DATA SERVICES
  2. 2. MANAGED DATA SERVICES The Evolution Of Investment Strategy The evolution of investment strategy is transforming the use of data. In modeling and executing complex portfolio decisions, managers increasingly require detailed reference data on the securities they are buying and they expect that information to be easily accessible. In the traditional model, the back office controlled access to the data: front- and middle-office users had to request access. With limited development resources, that access was often too costly or too late to be useful. In addition, back-office access is often driven by processing tasks, such as daily or pre- market data loads. But front-office users need updated insights throughout the trading day. The core challenge has therefore become – how do investment firms achieve greater on-demand access to mission-critical content in the face of growing pressure to reduce costs associated with the design, maintenance and hosting of such architectures? Managed data services are a direct response to this challenge and growing demand. These hosted software solutions provide access to a comprehensive universe of global multi-asset class data, efficient delivery of data services, and scalability via networks and technology infrastructures maintained and managed by the host. Crucially, all this is achieved by employing standard technologies that greatly ease the integration path. Managed data services also help to level the playing field between big firms and others in the market. Hosted solutions allow smaller firms to bypass a significant portion of infrastructure development and maintenance costs. These efficiencies enable small and midsize firms to compete more effectively with their larger rivals. Pricing & Reference Data 1
  3. 3. AN EXPANDING UNIVERSE OF USERS An Expanding Universe of Users The way in which content is retrieved is changing. Traditionally, data was sent to clients via batch files and was warehoused and then leveraged by the back office. With the advent of hosted services business applications are able to tap in to content on a ‘just in time’ basis, better serving the constantly evolving requirements of investment strategy; research; sales and trading; and pre-trade and post-trade compliance. Investment strategy Portfolio managers and investment firms seek alpha, while controlling for risk. Doing so requires creating new investment and trading strategies. They need access to a comprehensive universe of securities, covering a wide range of asset classes to model complex strategies. Hosted data services allow them to seize opportunities by: • Providing high quality data to support sophisticated trading strategies: A trading strategy is only as good as the data on which it rests. Sophisticated trading strategies depend on high-quality data available on demand. • Populating with reference data, corporate actions, news and historical data: Building robust trading models depends on the ability to feed and integrate up-to-date reference data, news and corporate actions into simulations. • Modeling portfolio “what-if” analysis: Provides users the tools to measure the effects of trading on single and multiple portfolios to better analyze and support risk monitoring. Research While some broker-dealers and buy-side firms still conduct their own research, third-party providers increasingly generate much of the research and analysis for asset managers. And as the number of independent research providers has risen, competition has ratcheted up the complexity and quality of the research. Strong research today requires access to data across multiple asset classes, markets and geographies to produce new insights. Sales and Trading Broker-dealer sales and trading activity is driven by institutional buy-side clients. Being able to identify securities those institutional clients may invest in can improve sales and trading revenue. To find marketable securities, generate ideas and drive price discovery, sales and trading needs access to a deep set of data and must be able to run sophisticated and robust queries and filters. Hosted data services can help achieve those improvements. 2
  4. 4. Pricing & Reference Data 3 Pre- and Post-trade Tools Managed data services can also provide a range of pre- and post-trade monitoring tools for meeting compliance, strategic and operational goals. • Compliance: Firms can more easily establish parameters for meeting client- specific goals. For example, managed data services make it easier to meet certain objectives such as monitoring for so-called “sin stock” assets in portfolios. • Strategic: Managed data services make it easier to filter for multiple strategic factors such as duration, credit rating, industry, sector, issuer and taxable or tax-exempt credits. • Operational: Managed data services facilitate post-trade processing, and support reconciliation, clearing, settlement and reporting. The tools help generate risk reporting, benchmark comparisons, total-return simulations and what-if scenarios in both the municipal and taxable bond markets. HOSTED SERVICES: THE VALUE PROPOSITION The asset management and brokerage landscape is changing dramatically, stressing organizations’ underlying technology. But maintaining that infrastructure calls for a major commitment of resources, one that is outside the capability of many small and midsize organizations. By leveraging hosted solutions, small- and medium-size firms gain access to security master data, avoid the overhead of building out costly interfaces and gain flexibility. Solutions which are hosted by trusted third parties allow them to refocus internal IT staff and resources on strategic, value-added services, rather than maintaining expensive infrastructure. Additionally, managed data services can form a part of your business continuity planning, adding to savings.
  5. 5. 4 Conclusion Managed data services give portfolio managers and investment firms greater capability toward implementing their investment strategy. It allows organizations of all sizes to leverage the technology infrastructure and access to security master data without the investment in databases. Interactive Data’s Apex® Managed Data Service is a hosted solution that gives you access to our complete universe of multi-asset data, using standard interfaces. We minimize the strain on IT and data management resources, delivering data to the desktop efficiently, allowing a broader range of users to leverage information. Our scalable technology reduces barriers to entering new lines of business. Interactive Data brings a scope and depth of content; quality reference data that is comprehensive, accurate and timely; a technology infrastructure platform that lets you bring data into your organization; and a focus on client service. Let us show you how you can leverage our expertise to better compete in global markets.
  6. 6. Pricing & Reference Data ©2015 Interactive Data - Reference Data | Market Insight LLC | INT_042015 ABOUT INTERACTIVE DATA Interactive Data Corporation is a trusted leader in financial information. Thousands of financial institutions and active traders, as well as hundreds of software and service providers, subscribe to our fixed income evaluations, reference data, real-time market data, trading infrastructure services, fixed income analytics, desktop solutions and web-based solutions. Interactive Data’s offerings support clients around the world with mission-critical functions, including portfolio valuation, regulatory compliance, risk management, electronic trading and wealth management. Interactive Data has over 2,500 employees in offices worldwide. OUR OFFICES: Amsterdam • Bedford • Chicago • Cologne • Dubai • Dublin • Frankfurt • Geneva • Glasgow • Hayward Helsinki • Hong Kong • Irvine • Jersey, CI • London • Luxembourg • Madrid • Melbourne • Milan • Minneapolis • New York Paris • Rome • Santa Monica • Singapore • Sydney • Tokyo • Toronto • Zurich LIMITATIONS: This document is provided for informational purposes only. The information contained herein is subject to change and does not constitute any form of warranty representation, or undertaking. Nothing herein should in any way be deemed to alter the legal rights and obligations contained in agreements between Interactive Data Pricing and Reference Data LLC and/or its affiliates and their clients relating to any of the products or services described herein. Nothing herein is intended to constitute legal, tax, accounting, investment, or other professional advice. Interactive Data makes no warranties whatsoever, either express or implied, as to merchantability, fitness for a particular purpose, or any other matter. Without limiting the foregoing, Interactive Data makes no representation or warranty that any data or information (including but not limited to evaluations) supplied to or by it are complete or free from errors, omissions or defects. Pricing, evaluations and reference data are provided in the U.S. through Interactive Data Pricing and Reference Data LLC and internationally through Interactive Data (Europe) Ltd. and Interactive Data (Australia) Pty Ltd. Interactive DataSM and the Interactive Data logo are registered service marks or service marks of Interactive Data Corporation in the United States or other countries. VantageSM is a service mark of Interactive Data Pricing and Reference Data LLC. Other products, services or company names mentioned herein are the property of, and may be the service mark or trademark of, their respective owners. Third party licenses may be required for access to certain data, e.g. ratings. Excel® is a registered trademark of Microsoft Corporation in the US and other countries. AMERICAS 100 Church Street 11th Floor New York, NY 10007 T: +1 (212) 771 6565 E: EMEA Fitzroy House 13-17 Epworth Street London EC2A 4DL T: +44 (0)20 7825 7800 E: ASIA PACIFIC 2001-2005, 20/F The Center 99 Queen’s Road Central Central, Hong Kong T: + 852 3962 8100 E: