Exchanges Are Becoming Data Marketplaces

How Exchanges Can Enhance Their Data Packaging and Personalize Client Segments

Leveraging Marketplaces to Build a Sustainable Exchange Data Sales Business

Emerging technologies that combine cloud hosting with the ability to store, manage, categorize and catalog large datasets are allowing exchanges and other trading venues to turn the data they generate from their core activities into highly targeted data products that can form the foundation of a viable data sales business.

What’s more, exchanges are learning that by offering granular subsets of their data to a wider population of market practitioners, they can greatly expand the audiences they reach, generating greater data revenues than before and boosting trading volumes in their listed financial products.

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Exchanges are Becoming Data Marketplaces
Building New Audiences and Promoting Trading Products

For a growing number of exchanges, the catalyst for transforming the data they create as a byproduct of their trading operations into a significant and sustainable data sales business has been the ability to create their own data marketplaces. Using platforms like the TickSmith Enterprise Data Web Store, exchanges are able to deliver on the promise of designing targeted and valuable data packages while gathering intelligence on customers’ data needs, enabling them to develop further data products and expand their audience to new client types.

Exchanges are no strangers to data sales. Many derive significant revenues from sales of their real-time quotes and related market data. But these are often sold in bulk packages that aren’t suitable for sales of different data types, like historical intraday orders and execution feeds, reference data and analysis/trend information, all of which is now in demand along with complementary alternative, ESG-related and other datasets.

As a result, exchanges are facing demand for new data types from new audiences, but often lack the expertise to package, sell and distribute the often-narrower datasets needed to meet clients’ requirements. Demand for historical, reference and other exchange-generated data can be more fragmented and often requires a more nuanced approach, both to product definition and pricing.

While exchange data teams are often optimized for real-time data sales to trading firms, they aren’t set up to deal with commercial arrangements outside of enterprise licensing agreements, which can require a lengthy and highly manual sales process. This doesn’t necessarily fit well with the more nimble and opportunistic approach required for more granular data products.

Exchanges and trading platform operators need the appropriate mix of organization, expertise and technology to streamline the sales process to market the right datasets to consumers in a way that makes it easy for them to find, sample and subscribe to new services. In this way, they can realize the opportunity to better package, deliver and monetize their historical and reference data.

One approach that is gaining traction is to create their own personalized data marketplace that can be used to present their data products and packages to interested prospects. What’s more, this approach – which resembles the e-commerce platforms consumers may be familiar with from their personal online experiences – supports interoperability with other information and technology providers, creating a centralized catalog of offerings that can be sold through any available channel or marketplace.

Exchanges using the TickSmith Enterprise Data Web Store are today able to design and define compelling data packages and products, and catalog them so they are easy to identify and find. The TickSmith platform allows exchange operators to price these datasets appropriately for interested consumers, creating a centralized and automated facility for selling and distributing these more narrow datasets potentially to substantially larger audiences.

As well as helping to create a sustainable data sales business going forward, these exchanges are experiencing a significant uptick in trading volumes in their financial products, as a result of the wider exposure of their data to the marketplace. For many, the combined impact of increased data sales and trading fees justifies their efforts to monetize their datasets.

Rethink Your Data Sales Strategy!

Exchanges are Becoming Data Marketplaces
Building New Audiences and Promoting Trading Products
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