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
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
• 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
• 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
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
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
Pricing & Reference Data
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
• 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
• 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
The asset management
and brokerage landscape is
changing dramatically, stressing
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
managed data services can
form a part of your business
continuity planning, adding to
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.