The New Frontier of Market Data: How QUODD is Leading the Charge

In today's rapidly evolving financial landscape, the market data sector is facing a pivotal moment for transformation. The commoditization of market data, coupled with the dominance of entrenched incumbents, has led to a significant slowdown in innovation. This stagnation is evident in several critical areas such as:

 

• Innovation Lag: Tech debt among incumbents has resulted in long wait times for crucial updates and enhancements.

• Scale Restrictions: Users struggle to validate or challenge security prices at scale, often forced to ingest massive volumes of data when only specific subsets are needed.

• Rigid Pricing Models: Current pricing structures lack flexibility, causing firms to overpay for unnecessary redundancies.

• Access Limitations: Exorbitant fees and cumbersome processes for remote access and ad hoc data retrieval continue to hinder operational efficiency.

 

This lack of progress has become more than just an operational inconvenience—it's a growing financial burden. A recent Burton-Taylor report revealed that global spending on market data surged by 12.4% in 2023, reaching an unprecedented $42 billion. This explosive growth is a clear indicator that traditional market data models are no longer sustainable. Leadership across financial industries is increasingly aware that without a strategic pivot, these escalating costs could jeopardize profitability and stifle innovation.

 

To combat rising costs, forward-thinking leaders must explore new strategies that transcend the limitations of legacy systems. It's no longer enough to simply manage these costs; it's imperative to rethink how market data is sourced, delivered, and consumed. This is where QUODD steps in as a transformative force, offering a next-generation solution designed to realign economic incentives, optimize operational efficiency, and ultimately, safeguard the bottom line.

 

Introducing QUODD as a Catalyst for Change

 

Data on demand is becoming the new standard, redefining buyer expectations and opening the door for disruptors like QUODD. Breaking free from the outdated paradigm of market data delivery, QUODD is propelling the industry forward with a next-generation market data infrastructure, built on three foundational pillars:

 

• Accessibility: QUODD minimizes integration friction, offering self-service access and customization.

• Compatibility: It provides multiple “on-ramps” tailored to the unique needs and architectures of any organization, regardless of their current providers.

• Economic Alignment: QUODD’s innovative pricing structures empower organizations to optimize costs and eliminate redundancies.

 

We have democratized access to market data, enabling a diverse range of use cases through our extensive content catalog, which includes 150 data sources and 250 billion data points in our data lake. This wealth of data is accessible through multiple channels:

• QX Marketplace: Access individual datasets through various communication methods.

• QX Digital: View and extract data on demand digitally.

• QX Automate: Programmatically access multi-asset class data for integration into third-party applications.

 

Building from this platform allows us to meet customer needs today with significantly reduced switching costs while opening new options for even more advanced integrations as their digital strategy continues to evolve. By reducing the friction of integrating and onboarding new sources of data on a self-service, on-demand, and connected basis, the QX Marketplace and QX Digital Platform deliver a superior experience, enabling customization and integration at the same time. And because we are cloud-native with a modern tech stack, we can build faster and respond to customer requirements with more agility and transparency.

 

The New Market Data Paradigm: Builders vs. Consumers vs. Operators as a Service 

 

The new market data paradigm empowers enterprise consumers to select the approach that best fits their needs, whether they are innovators, mature institutions, or building new business units.

 

• Innovators (Builders): For innovators who need modern, cloud-first, API-driven solutions, QUODD’s focus on accessibility is crucial. By removing integration friction and enhancing self-service access, QUODD enables builders to rapidly adopt and leverage advanced data infrastructure. Innovators require customizable APIs and data feeds to build innovative applications, with flexible pricing models to suit their evolving needs. Innovators also need real-time and historical financial data solutions to optimize portfolio analysis, back-office operations, and client engagement. QUODD’s cloud-native platforms provide builders with the flexibility, control, and scalability they need all with cost transparency and ease of integration into their platforms.

 

Best Practice/Use Case: An industry-leading information source for ETF intelligence benefits from QUODD's modern approach, sourcing real-time data from the QX Marketplace. The firm efficiently redistributes this data across multiple modules on its website, filtering securities of interest and only paying for the data consumed.

 

• Mature Institutional Buyers (Consumers): For mature institutions, compatibility with existing systems is key. These organizations consume market/reference data but seek to work with innovative providers without overhauling existing systems. QUODD’s multiple “on-ramps” allow for seamless integration with current infrastructures, enabling a phased approach to modernization. Real-time pricing, reference data, and corporate actions are critical to mature institutional buyers. QUODD’s customizable, cloud-native solutions offer scalability, operational efficiency, and compliance, ensuring accurate reporting for mature institutions.

 

Best Practice/Use Case: A tier-1 insurance company leverages the QX Digital Platform, finding success in its ability to customize workflows for middle and back office teams. The platform provides a self-service market data experience, offering ad hoc lookups, bulk downloads, and programmatic access.

 

• Service Providers (Operators as a Service, Oaas): Economic alignment is crucial for organizations offering outsourced data solutions, where controlling costs and eliminating redundancies are paramount. QUODD’s flexible pricing structures empower these providers to optimize their operations and introduce innovative distribution models, such as Operations as a Service (OaaS).

 

Best Practice/Use Case: Multiple trust and wealth portfolio accounting platforms leverage the QX Automate module within the QX Digital Platform to meet stringent operational mandates with cost-effective, scalable solutions. These institutional customers harness data as a strategic asset, utilizing the full range of content available in the QX Marketplace and the digital experience (QX Digital), which can also be programmatically accessed through QX Automate.

 

This approach allows service providers to deliver high-quality, reliable data services that meet the dynamic needs of their clients while maintaining operational efficiency, and:

• Pull down entire content libraries in bulk for comprehensive data analysis and reporting.
•  Connect and integrate workflows seamlessly with enterprise-grade processes.
• Track usage entitlements by institution and their end customers, ensuring accurate billing and compliance.
• Schedule jobs and respond to on-demand requests for intra-day data needs, ensuring timely and precise data delivery.

 

Linking Technology to Business Impact: From QX Marketplace to QX Digital

 

QUODD’s comprehensive approach to data sourcing, processing, product development, and client delivery is designed to provide an optimized experience for QX Digital Platform clients. The content in the QX Digital Platform is built from the QX Marketplace, serving as the technological foundation that fuels data for both innovators and mature institutions.  Whether for internal consumption or the distribution of new solutions, our cloud-native technology provides the infrastructure necessary for high usability and flexibility.

By virtue of technology reducing the friction of integrating and onboarding new sources of data on a self-service, on-demand, and connected basis, the QX Marketplace and QX Digital Platform deliver a superior experience, enabling customization and integration at the same time. From data sourcing to client delivery, QUODD’s technology ensures that end-users can seamlessly integrate and manage their market data needs. With flexibility and compliance at the forefront, QUODD integrates licensing entitlements, pricing, and billing, providing scalable, accessible data solutions anytime and anywhere.

 

Conclusion

This new paradigm offers a way forward for all market data consumers. At QUODD, we prioritize a client-centric philosophy that places end-users at the center of the data consumption experience. Our intuitive technology tools empower clients to develop data products tailored to their unique business requirements, resulting in significant cost savings and operational efficiencies.

 

QUODD is not merely participating in the market data revolution; we are leading it. In response to the rising costs and inefficiencies in the market data landscape, QUODD is transforming the industry, ensuring that our clients are equipped with the tools and flexibility they need to thrive in an ever-evolving landscape. Through our cloud-native core technology, we deliver customizable client workflows that are turnkey, scalable, and cost-effective. With the QX Marketplace and the QX Digital Platform, we provide the infrastructure and tools for the automation, control, and consumption of all types of financial market data, enabling institutions to manage their preferred consumption model and data update frequency.

 

About QUODD

 

With technology as our driving force, QUODD is the premier global financial market data and content provider. We offer fingertip access to comprehensive, global information in any format, with unmatched quality, timeliness, value, and service. Our technology and cloud-based infrastructure empower customers to create tailor-made data products in the format of their choice, anytime, anywhere—positioning institutions at the center of a dynamic data consumption ecosystem.