recentpopularlog in

jerryking : refinitiv   3

Rise of machine trading forces data providers to pivot | Financial Times
OCTOBER 30 2019 | Financial Times | Philip Stafford in London.

Financial information suppliers are on the hunt for new markets such as wealth management and corporate audiences....... the days of depending on selling information on fixed workstations, or terminals to a core group of investment bankers and fund managers — the mainstay of the industry over decades — were quickly receding........Cost-conscious banks are reducing the numbers of analysts and traders they employ, cutting research or automating processes that have long been done by humans. That wipes out a once reliable client base for terminals, leaving data specialists to shift their focus elsewhere.....Chief technology officers need to become more efficient more quickly,” “Our fastest growing segment is corporates, business development and investor relations.” This had left rivals such as Bloomberg, Refinitiv and Morningstar “in a race . . . for each others’ customers,........Demand is increasingly being driven by the need for enriched data that can be fed into computers, rather than read by humans, ....“We’re seeing a big shift to data-driven strategies, and fundamental analysis will be more data-driven,” he said. “This is where the industry is headed and where we’re going for it.”....Overall terminal sales are healthy... estimates are that the number of users of terminals, or desktops, in the investment industry will rise to 1.6m this year and hit 1.7m by 2021. Most of that growth is set to come from areas such as investment management rather than trading....Mitko Yankov, global head of platform at Refinitiv, agreed that the old model of selling data as pre-packed bundles of information was disappearing. Customers wanted richer types of data, he said. This means serving developers, data scientists, quantitative traders and even traders and analysts who can write their own code. “They really don’t appreciate monolithic bundles,”...other data providers are hoping to benefit from the rising demand for data as markets apply computing trends such as artificial intelligence and machine learning to trading and analytics. The rush has been exemplified by the London Stock Exchange Group’s $27bn deal to buy Refinitiv.
===========================
This (old - ish) article makes one think of a couple of factors that contributed to a change of balance:
https://www.bloomberg.com/news/articles/2019-02-25/jpmorgan-s-traders-nab-market-share-while-deutsche-bank-s-slip
First is the "exorbitant privilege" of being able to print more than others, but near second is probably information and information processing power advantage By the way, the article cited is a reasonably rich source of information, not to be compared with ft's, where there is no hard data and time perspective. There is another question: How does it square up with market as a "price discovery mechanism"? With barriers to safe entry into this market in billions of investment into technology what are the mere mortals supposed to do? The market seems to be turning into an ever narrower oligopoly.
alternative_data  automation  Bloomberg  coding  CTOs  data  data-driven  data_scientists  Factset  financial_data  fundamental_analysis  investment_management  LSE  Morningstar  Refinitiv  Thomson_Reuters  traders 
9 weeks ago by jerryking
London Stock Exchange lays $27bn bet that data are the future
July 28, 2019 | | Financial Times | by Arash Massoudi, Richard Henderson and Richard Blackden.

The London Stock Exchange Group more than 300 years old, is trying to get back on the front foot with a plan for its most ambitious acquisition, one that will shape the direction of the group for years to come. It is the most striking demonstration yet of the charge among exchange operators into the business of supplying the data that is at the heart of markets....The LSE on Friday confirmed a Financial Times report that it was in talks to buy data and trading venue group Refinitiv for $27bn including debt, from a consortium led by private equity group Blackstone. If an agreement is reached for a company best-known for its Eikon desktop terminals, it would transform the LSE into a provider of financial market infrastructure and data with the scale to take on US exchange industry heavyweights Intercontinental Exchange and CME Group as well as Michael Bloomberg’s financial information empire.

“This would be a bold move in the shift among exchanges away from the matching of buyers and sellers and into the business of selling information,” said Kevin McPartland, head of market structure research at consultancy Greenwich Associates. “Data are so valuable and so is having the network of traders and investors to access that data — that’s all at play here.”......The deal would also be a defining moment for the LSE’s chief executive, David Schwimmer, just a year after the relatively unknown former Goldman Sachs banker was parachuted in to steady the ship. Its scale will bring considerable risk in execution alongside the need to convince LSE shareholders that taking on Refinitiv’s $12bn of debt will prove worth it.

Industry analysts see the strategic logic of the deal for the LSE, best known for its UK stock exchange and derivatives clearing house LCH. While revenue from initial public offerings can be more volatile, spending by everyone from asset managers to hedge funds on financial data and the analytical tools to make use of it has been going in one direction. It hit a record $30.5bn last year
.......“What’s happened is exchanges have found it more difficult to find ways of generating revenue in their traditional businesses,” “You can deliver data so easily now, there is voracious appetite from anyone making investment decisions so they can get an edge.”.....As well as winning over LSE shareholders, any deal is likely to face a lengthy period of antitrust approvals.

“There is a wider market concern about exchanges and data vendors combining,” said Niki Beattie, founder of Market Structure Partners. “The global world of data distribution is presided over by a small number of players who have a lot of power.”
asset_management  Blackstone  Bloomberg  bourses  data  financial_data  hedge_funds  inflection_points  IntercontinentalExchange  investors  LSE  mergers_&_acquisitions  M&A  Refinitiv  stockmarkets  Thomson_Reuters  tools  trading_platforms  turning_points  defining_moments 
july 2019 by jerryking
Thomson Reuters unit to be renamed Refinitiv after Blackstone deal - The Globe and Mail
LONDON
REUTERS
PUBLISHED 2 DAYS AGO

Thomson Reuters Corp’s Financial and Risk unit, in which U.S. private equity firm Blackstone Group is buying a majority stake, will be renamed Refinitiv once the deal closes, the company said in a statement on Friday.

Blackstone is making its biggest bet since the financial crisis with the $20-billion deal, which pits co-founder Stephen Schwarzman against fellow billionaire and former New York Mayor Michael Bloomberg in the financial information industry.

The Thomson Reuters unit provides information and related services to financial services professionals. David Craig, current head of Financial and Risk, will be CEO of Refinitiv, Thomson Reuters said in the statement.

The deal is expected to close in 2018,
Bloomberg  financial_data  Thomson_Reuters  Blackstone  Refinitiv 
july 2018 by jerryking

Copy this bookmark:





to read