This week has seen Bloomberg and Thomson Reuters lose market share in the highly valued market data arena.
Market data is the lifeblood for every trader, and for decades Bloomberg and Reuters have owned this space – and let’s be realistic they still do. But attitudes are changing and this is due to a number of factors:
…A common theme emerging? Yes – Cut Costs!
“Last year, The Post exclusively reported that JPMorgan and Bank of America, two of the company’s (Bloomberg’s) biggest customers, were looking to cut as many as 7,000 terminals during the next three years as part of larger budget overhauls.” NY Post
There are a multitude of factors which are causing the purse strings to be tightened and actually we should ask ourselves why this hasn’t happened sooner? Financial Institutions are now highly regulated and rightly so. This not only creates a healthier economy but also opens the door to smaller best of breed technologies to thrive in this environment. Finally it’s not about ‘Who you are’ but it’s about ‘What you can do’. Is this small drop in market share a sign of times to come? Could we see a changing of the guard?
Next week we will consider how the attitudes of senior bank executives are opening towards purchasing and supporting smaller fintech firms.Download PDF