Sean Sullivan – How prevalent is it? A study conducted by research consultancy Opimas predicted that by 2020, 20% of buy-side firms with more than $50 billion AUM will outsource some portion of their trading operations.
RSRCHXchange’s virtual library will be accessible through PitchBook’s Research Center, which includes PitchBook’s best-in-class research on private asset classes and emerging technology sectors as well as Morningstar equity research. Together, PitchBook and RSRCHXchange will create one of the most comprehensive online research marketplaces covering both the private and public financial markets. Additionally, this integration enables RSRCHXchange providers to easily extend their reach to a large and growing private market client base leveraging their existing research feed, access controls and intellectual property protection.
Lynn Martin – “With this expansion, MSCI will license and integrate ICE Data Services’ market leading fixed income pricing and reference data into MSCI’s products and services,” says Diana Tidd, Head of Index at MSCI. “MSCI and ICE have developed a strong relationship over the past decade, and we look forward to providing our clients with more access to ESG and fixed income data and tools.”
Steven Chen – FactSet primarily derives its revenue from subscriptions to products and professional services such as workstations, analytics, enterprise data, research management, and trade execution. This business model is attractive from multiple perspectives – it provides highly predictable sales streams, strong cash generation, economic moat, and high scalability.
Douglas Christensen – Transparency has led to cost pressures and a reduction in research spending, which has had the unintended consequence of brokers and banks scaling back on the cost of coverage and ultimately has led to diminished output of published research.
Iain Greer – Firms need to fully embrace realistic market solutions, provide differentiation from fragmented and limited market simulation environments, and adopt solutions which allow them to quickly and efficiently represent:
- The different trading strategies of market participants, such as high-frequency traders (HFT), investment managers or competing executions desks
- The micro-structure of exchanges, including the execution policies, order types, speed bumps or auction rules.
- The latency and locations of different exchanges or execution venues.
- The bank’s own internal infrastructure, including smart-order routers, circuit breakers, client on-boarding, and trade processing critical to success.
- An unlimited number of future scenarios, including regulators’ stress tests, and measure their impact in a safe, virtual environment.