⦿ Executive Snapshot

• What: A report highlights AI and machine learning's growing impact on market data consumption among asset managers.
• Who: SIX, Crisil Coalition Greenwich, asset managers, wealth managers, private banks.
• Why it matters: The findings underscore a significant shift in data consumption practices, driven by technological advancements and the need for real-time data in a 24/7 trading environment.

⦿ Key Developments

• 80% of asset managers view AI and ML as key drivers of market data delivery over the next two years.
• 65% of respondents use real-time data throughout the trading day, influenced by the rise of 24/7 trading.
• Almost 70% of participants expect a budget increase of 1% to 5% for market data, particularly in index, risk, regulatory, and crypto data.
• 63% of participants now use public cloud for data connectivity, up from 30% in 2023.
• 53% of respondents believe that cloud will enhance the delivery of streaming data.

⦿ Strategic Context

• The increasing integration of AI and ML in capital markets reflects broader trends toward automation and efficiency in financial operations.
• The shift from direct-from-source data to reliance on market data vendors signifies evolving preferences in data sourcing and delivery models.

⦿ Strategic Implications

• Immediate implications include enhanced data delivery capabilities, enabling firms to make more informed investment decisions and manage risk effectively.
• Long-term, the focus on AI/ML and cloud infrastructure could reshape market data management practices, requiring firms to invest in robust data governance.

⦿ Risks & Constraints

• Potential risks include challenges in data quality and accuracy as firms adapt to new technologies and seek diverse data sources.
• Regulatory complexities may pose obstacles, necessitating firms to develop comprehensive data management practices to navigate compliance effectively.

⦿ Watchlist / Forward Signals

• Future developments in AI/ML applications in market data and cloud infrastructure adoption will be crucial to monitor.
• Increased spending on market data and shifts in data sourcing strategies will signal firms' adaptation to the evolving landscape.