Financial Market Data Spending Expected To See Strong Growth In 2021; Decentralization Of Industry Workforce Will Support New Demand For Alternative Data - New Burton-Taylor Report
LONDON and NEW YORK, Feb. 18, 2021 /PRNewswire/ -- Global spending on financial market data is expected to exceed historical growth rates, with 56% of respondents in Burton-Taylor's Financial Market Data 2021 Kick-off survey expecting spending to be much higher or moderately higher than the 5-year CAGR of 4.0%. User segments expected to see the largest increases included both equity and fixed income sales and trading desks, with 47% and 43% in each category expecting spending increases.
Despite the broad economic impact of COVID-19 shutdowns, the financial industry recovered quickly especially as trading volumes surged across nearly every asset class. The financial industry has become more agile and creative in how it uses data, finding new ways to integrate data and channels into workflows.
Industry expectations of market data spending trends shifted dramatically in the second half of 2020, as 33.7% of respondents in the Burton-Taylor June 2020 survey were expecting market data spending to decline, as compared to 10.0% of respondents in our current survey. Alternative data is clearly in the minds of the industry, as 62.0% of respondents expect spending on alternative data to increase.
"Although market data spending was expected to decline as a result of COVID-19 pandemic, surging financial markets in the second half of 2020 resulted in rising demand and spending, with outsized growth expected in front office segments, as trading volumes increase," says Robert Iati, Director at Burton-Taylor. "Firms continue to target new data source that can provide a trading advantage, especially as the importance of social media and sentiment data increases in the current work from home environment."
The 24-page Burton-Taylor Financial Market Data 2021 Kickoff Survey report is available for immediate download by Burton-Taylor research members through the research portal. The report can be purchased by visiting https://burton-taylor.com/financial-market-data-2021-kickoff-survey/ or by contacting orders@burton-taylor.com, +1 646 225-6696.
About Burton-Taylor International Consulting (www.burton-taylor.com)
Burton-Taylor International Consulting, part of TP ICAP group, is the recognized leader in information industry market research, strategy and business consulting. Burton-Taylor Exchange, Credit, Risk, Compliance, Media Intelligence, PR and Market Data share figures are seen as industry benchmark standard globally. For further information see www.burton-taylor.com.
About TP ICAP (www.tpicap.com)
TP ICAP brings together buyers and sellers in global financial, energy and commodities markets. It is the world's largest wholesale market intermediary, with a portfolio of businesses that provide broking services, data & analytics and market intelligence, trusted by clients around the world. We operate from offices in 31 countries, supporting award-winning brokers with market-leading technology. For further information see www.tpicap.com.
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SOURCE Burton-Taylor International Consulting
