Data Management

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Becca Lipman
Becca Lipman
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Market Data Isn't Free & Other Lessons FinTech Startups Learn the Hard Way

Stephane Dubois shares market data advice for those looking to revolutionize financial technology.

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Becca L
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Becca L,
User Rank: Author
8/25/2014 | 2:42:01 PM
Re: Shows how archaic the financial markets are
Nate, this is exactly it. Market data is expensive, But necessary. A lot of these start ups Pride themselves on their workarounds and cost-cutting techniques. Dubois is rightly saying that there's a fine line between getting sucked into paying too much and building potentially illegal or destructive alternatives. The old guards may be increasingly irrelevant but they're still in the picture, startups ignore them at their own risk.
Nathan Golia
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Nathan Golia,
User Rank: Author
8/20/2014 | 3:50:35 PM
Re: Shows how archaic the financial markets are
It's not the only industry to heavily guard its most valuable assets. But in this age, workarounds come fast and furious and eventually the old guard is driven out.
Greg MacSweeney
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Greg MacSweeney,
User Rank: Author
8/13/2014 | 3:53:38 PM
Re: Shows how archaic the financial markets are
The industry will fight to the death to protect its market data business. It will be interesting to see how this plays out. Most other industries have been disrupted by digital technology, so it stands to reason that market data may also suffer the same fate.
Leximize
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Leximize,
User Rank: Apprentice
8/7/2014 | 11:53:00 AM
Shows how archaic the financial markets are

"What's the temperature outside?" 

- "Pay me a dollar and I'll tell you."

"How much is a loaf of bread?"

- "That's for me to know and you to pay to find out."

The financial industry is such a throwback to the dark ages they try to extort their customers through their medieval "protect my ricebowl" business practices. (Their ricebowl, how they thieve a living, by selling what should be free.) It's no wonder society despises Wall Street and Bank Street. If this were actually value-add information, analysis or knowledge abstraction say, then sure, sell it. But it's not. For the most part (the part that startup financial advisory firms need) it's just price. 

Fortunately such practices are going the way of the Iron Maiden and guillotine. Such information must be freely available -- the world knows this -- and sites like Quandl are making it happen.

 

 

Becca L
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Becca L,
User Rank: Author
8/6/2014 | 5:15:05 PM
Re: Market data is a big time business
Greg, you make a good point. I guess it's different when you're suddenly running the show and faced with the bill. Perhaps they think because they are a small player they can get a better deal, or that it's okay to just scrape data because who will really care (which is not only often illegal, but gives their product questionable quality).
Greg MacSweeney
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Greg MacSweeney,
User Rank: Author
8/6/2014 | 3:38:47 PM
Market data is a big time business
Since most fintech start ups are founded from people who leave a financial services firm (or another vendor), it's hard to believe that many of them don't know that market data is costly. After all, it's a multi-million dollar business for the exchanges.
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