Market Data Company Challenges of Managing Market Data - Montreal Info Session Hosted by the Market Data Company October 21st, 2015 Market Data Company Montreal Market Data Info Session Agenda  Market Data Management Challenges  Market Data Scope  Market Ownership & Accountability  Market Data Value proposition  An MDC Point of View

1. Hosted by the Market Data Company
October 21st, 2015
Market Data Company
Montreal Market Data Info Session

2. Agenda
 Market Data Management Challenges
 Market Data Scope
 Market Ownership & Accountability
 Market Data Value proposition
 Questions
MDC @ Market Data Company 2

3. Market Data Scope
•Definitions and Categories
Market Data
Ownership / Accountability
•Structures or Operating Models
Market Data Value
Proposition
•Best Practices & Management Reporting
Market Data Management Challenges
MDC @ Market Data Company 3

4. What is Market Data?
• Financial information necessary to account for, analyze, and trade instruments of
the World Markets across all asset classes
How big is Market Data in the marketplace?
• Top 3rd general ledger expense item
• Products and Services comprise of
• 1000 Global Vendors, providing
• 2000 Products
How do firms organize Market Data?
• General Ledgers
• Inventory Management Systems (MDSL, InfoMatch, FITS, Spreadsheets)
• Product (or Service) Categories
MDC @ Market Data Company 4
Market Data Management
Market Data Scope

5. Business
Application
Market
Data
Terminals
Market
Reference
Data
Research
Subscription
Common Product Categorization
(General Ledger influence)
FISD Product Categorization (8-10)
Operating
Expenses
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Analytic Tools
Reference & Pricing Data
Datafeeds
Research,News,Commentary
Comms/ Infrastructure
Speciality Content
Exchange
Index/ Benchmarks
Market Data Wkstn
Trading/Portfolio Mgmt
Buy-side Sell-Side
Common Challenges:
• Basic Product Categories limit transparency
• Capitalized and Operating Expense items are co-mingled
• Spend & accountability often resides with different, unrelated groups
MDC @ Market Data Company 5
Product (Service) Categorization
Common Used and FISD Categories - Accountability Impact
Market Data Scope

6. Quantity / Complexity of Agreements
Skills/Resource
Low
High
High
Administration
Inventory
Management
Business
Knowledge
Product
Knowledge
Spend
Management
Specialization
Organizational Need for Best
Practices
MDC @ Market Data Company 6
Market Data Management Maturity Curve
Ownership
Accountability

7. Market Data
Governance
Manage
Vendors
Manage
Inventory
Service
Integration
Manage
Demand
Market Data
Optimizatio
n
Monitor
Performance
MDC @ Market Data Company 7
Market Data Management Key Functions
Processes within Market Data Management Function
Ownership
Accountability

8. Business Units
BU #1 BU #2
Vendors
TR
S&P
Moody`s
TMX
Markit
MSCI
Bloomberg
Support
Functions
Strategic
Sourcing
Legal
Finance
IT
• Business is accountable for all
negotiation, procurement,
implementation, and payment activities
• Business is responsible for facilitating
the 6 processes within the Market
Data Management Function
Manage
Vendors
Manage
Inventory
Service
Integration
Manage
Demand
Market
Data
Optimizati
on
Monitor
Performan
ce
Manage
Vendors
Manage
Inventory
Service
Integration
Manage
Demand
Market
Data
Optimizati
on
Monitor
Performan
ce
MDC @ Market Data Company 8
Market Data Management Decentralized Model
Key Functions within a Decentralized Operating Model
Ownership
Accountability

9. Business Support Functions
Strategic SourcingLegal Finance IT
Vendors
TR
S&P
Moody`s
TMX
Markit
MSCI
Bloomberg
Market Data
Administration
Market Data
Compliance
Market Data
Solutions
Market Data
Engineering
1 2
3 4
Business
BU #1
BU #2
BU #3
BU #4
BU #5
BU #6
Market Data Governance
Manage
Vendors
Manage
Inventory
Service
Integratio
n
Manage
Demand
Market
Data
Optimizati
on
Monitor
Performan
ce
MDC @ Market Data Company 9
Market Data Management Centralized
Ownership
Accountability

10. So…why should anyone care?
The Value Proposition of highly organized
team focused on Market Data Potential
Benefits
• Demand Management – align user requirements with
organizational strategy
• Supply Management – mitigate operational and third party
dependency risk
• Administration Management – spend transparency (for a top 3
operating expense line item) to mitigate operational risk; build out
knowledge center to support decision-making; analytics and
reporting
• Technology & Ops – leverage and optimize technology, within
the context of Data Management •Market Data
Administration
•Operations &
Technology
•Demand
Management
•Supply/Vendor
Management
Vendor and
Product
Intelligence
User
Requirements
Current,
Integrated,
normalized
content
Access and
Controls
MDC @ Market Data Company 10
Market Data Management
Managing from Procure-to-Pay, and from Renew-to-Pay Cycles
Market Data
Value Proposition

11. Demand
Management
Market Data
Administration
Operations &
Technology
Vendor Supply
Management
Best Practices
Provide end users with only
required data
Ensure client pays only for
services used
Optimize data distribution and
infrastructure
Ensure client has negotiated
best commercial terms
Goals
A. Active Contract/Services
Management
B. Leverage Technology to
manage information and
drive efficiencies
C. Centre-led operating
model (Market Data
management/ stewardship)
D. Active Messaging System
Controls (Applications- and
Exchanges-centric)
E. Monitor and Control
Spend
F. Relationship Management
MDC @ Market Data Company 11
Market Data Management Framework
Best Practice Framework
Market Data
Value Proposition

12. MDC Focus What does that give you? Products and Services
Market Data Definition and
Service Categories
• Resource Requirements (sizing your
team)
• Analyzable information
• Market Data Optimization
program
• Benchmarking capabilities
Structure or Operating Model • MD Mgmt Governance
• Roles and Responsibilities
• Transparency (Spend, Vendor,
Demand)
• Effective matching of User
Requirements to Product offerings
• Compliance
• Accountability
• Market Data Optimization
program
• Managed Solutions
Best Practices • Usage and Spend Optimization
• Knowledge-base
• Spend Transparency
• Requirements validation
• Maneuverability
• Market Data Optimization
program
• Big Bloom
MDC @ Market Data Company 12
Market Data Management Solutions
Market Data
Value Proposition

13. 13
Future State - Market Data Management Centre of ExcellenceMarket Data Management Diagnostic
Discovery
• Spend Analysis
• Maturity Assessment
• Opportunity Assessment
• Business Threat Assessment
• Current State
• Available Savings
• Business Case
• Transformation Road Map
Strategic Sourcing
• Spend and Opportunity Analysis
• Alternative Sourcing Initiatives
• Addressable savings programs
Market Data Excellence
• Target Operating Model
• Inventory System Implementation
• Relationship and Reporting Management
• Outsourcing - Managed Solution (Administration)
4 – 12 WEEKS 6 – 18 Months
OurExpertise
• Data Sourcing and Procurement
• Technology and Data Management
• Organizational Transformation
• Inventory Management Implementation
• Relationship and Reporting Management
• Risk Management
• Management Advisory
• Managed Services
• Human Resources and Capital
1 2
3
3 Steps driving value through effective leadership
• The Program fundamentally optimizes the structure and operational Market Data services
• Emphasis on governance, skilled resources, and highly effective processes
• Discovery of current state operations
• Spend and consumption transparency
• Efficiencies and standardization based on industry best practices
MDC @ Market Data Company
Market Data Company Solution Offering

14. Market Data Company
Who we are, and what we do for financial firms:
 Clarity to complex relationships for market data used in organizations
 Market data programs focused on usage and spend behaviour
 Implement transformational organizational programs
Our Market Data Team
Specialized Market Data Consultants
Jean-Pierre Paquet
Senior Consultant
C +1-514-777- 5135
Jean-
Pierre.Paquet@marketdatacompany
.com
Market Data Company
Market Data Senior
Consultant
Head of Delivery
Maurice Severin
Managing Principal
C +1 905-464-3696
Maurice.Severin@marketdatacomp
any.com
Robert J Benedetto
Partner
C +1 416-315-7177
Robert.benedetto@marketdatacom
pany.com
Market Data Company
Program Delivery
Ali Yamin
Senior Consultant
C +1 416-666-8184
Ali.Yamin@marketdatacompan
y.com
Senior Consultant
Technology
Market Data Company
MDC @ Market Data Company 14
Market Data Company - Team

15. Thank you.
Market Data Company