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Market data information is a costly commodity and the ability to
monitor, apportion and control this cost is a vital requirement
for any market data manager. Harco Technology's Data Access and
Reporting Tool (DART) has become the standard for analysing the
actual consumption of market data on the trading floor and allows
organisations to rapidly identify and de-permission unused services
from exchanges, third party news sources or vendor products.
Most market data is paid for on a subscription basis. That is, banks
contract a number of traders for a service for a minimum duration,
usually one month or one quarter. These services must be paid for
whether they are used or not.
By reflecting each client's cost and administration structure DART
can rapidly identify unused services and present them in a wide
variety of ways, allowing them to be taken to all levels of the
business. Let's start at the top level and then drill down. David
Grant is an equities trader working in London and dealing in European
stocks. The first report (figure 1) provides a high level view of
how many exchanges he has accessed over the last three months. The
pie chart in main window tells us that David is 29.7% over-permissioned.
That is, of the 30 exchanges listed in the upper window and enabled
on DACS/TIB Entitlements (and declared on your honesty statement)
he has used only 21. The cost of David's unused services is about
£146 per month.
A USER'S EXCHANGE UTILISATION HISTORY
Here we have run the report for exchanges but the analysis can also
be performed for specialist services or vendor products, or generate
pie charts to compare usage and permissions for each cost centre,
department or admin group.
Now let us look at David's market data usage in more detail. Firstly,
we can identify when his exchanges were enabled (or became liable
for fees). Next, this report shows the frequency of exchange use
over time. David Grant obviously uses EASDAQ a lot - 17 times during
the week ending 11/5/2001 and 20 times the previous week. CME and
EURONEXT COMMODITY FUTURES are not used at all, during the whole
six weeks being analysed. DART can automatically de-permission them
through DACS, and the honesty declaration can be altered to generate
a saving of about 25 dollars per month.
Figure 2 shows the long-term history of a user's market data consumption
that is kept in DART. This allows clients to perform trend analysis
over many months and even years.
TABLE OF HISTORY BY EXCHANGE
Finally, let's look at historical permissions v. used in a different
way. Instead of navigating by user we can look for unused services
by exchange (figure 2). Approximately 56% of users entitled for
Chicago Board of Trade (CBOT) have not used it in the 3 month period
ending 18 May 2001. We can see the 5 users concerned and when they
were enabled for CBOT. Chicago Board of Trade costs about 31 dollars
per month. Another cost saving opportunity!
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