The Challenge: Rising Costs and Hidden Liabilities:
Market data often represents the second or third biggest expense for consumer firms. Primary data sources and exchanges are constantly looking for ways to increase their revenue from data, implementing strategies such as:
Increased Fees for Data Services: This could involve introducing entirely new fees for services that were previously free, or raising existing fees.
Expanded Fee Categories for Non-Display Data Usage: Traditionally, fees could have been focused on displaying data. Now, fees might be extended to cover any use of the data, even if it’s not displayed directly to the end user.
Enhanced Fees for Derived Data and Original Works: Data providers might charge more for data that has been manipulated or transformed into new products, such as indices, structured products, or contracts for difference (CFDs).
More Frequent Data Audits and Wider Scope: Data providers could be conducting more audits to ensure compliance with their license agreements. Additionally, the net of consumers who are subject to audits might be expanding.
These developments can lead to significant financial exposure and hidden liabilities for consumer firms. Managing this effectively requires expertise, experience, and dedicated resources.
Our Solution: Optimise Your Market Data Usage and Reduce Costs
We offer a comprehensive range of services to help consumer firms navigate the complexities of market data licensing and significantly reduce costs. Here’s how we can help:
Uncover Hidden Costs: We conduct a deep dive into your market data usage to identify and quantify all associated financial exposures and liabilities. This includes uncovering potential fees you might not be aware of.
Develop Cost-Saving Strategies: Based on our analysis of your situation, we’ll recommend and implement a customised plan to optimise your market data licensing costs.
Discreet Settlement Management: We can act as your intermediary when negotiating settlements with data sources and providers. Our expertise helps ensure you receive favourable terms while protecting your interests.
Expert Audit Defense: Our experienced team will manage data audits on your behalf. We’ll work diligently to ensure a thorough and robust defence, minimising any potential financial impact.
Litigation Support in Market Data Disputes: If legal action becomes necessary, we can provide expert witness services to support your case during arbitration or court proceedings related to market data disputes.
Ongoing License Management: We don’t just help you address immediate challenges. We offer ongoing advisory services to ensure you remain compliant with your licenses and continue to maximize cost efficiency over time.
Proven Results and Measurable Benefits: With over 30 years of experience in 80 legal jurisdictions, we have a proven track record of success.
Here are just some of the benefits we can deliver:
Reduced Costs: Our clients have seen a significant reduction in financial claims arising from data audits, with an average reduction exceeding 90%.
Global Expertise: We have a diverse client base, working with some of the world’s largest Tier 1 institutions as well as smaller financial firms. This extensive experience allows us to navigate the complexities of market data regulations across 80 legal jurisdictions.
Cost Savings: We have a proven track record of helping clients achieve substantial cost reductions related to market data. These savings range from 6% to 84%, with the total amount saved exceeding $3 billion for our clients.
Monetizing Data Assets: We go beyond just cost-cutting. We can help you identify and unlock the value of your internal data sets. By working with you, we can turn your data into revenue-generating assets.
Thought Leadership: We are constantly at the forefront of market data issues. This means you get access to the latest insights and strategies, allowing you to make informed decisions about your data.
By choosing us, you can gain control over your market data costs, mitigate risks, and unlock the full potential of your data assets.
The IPCL team have collectively saved our clients more than US $3 billion. Apply for a free consultation and discover how we can help you achieve significant financial savings and peace of mind.
Get in touch today for a free consultation to see how we can help.
