On average, mid-market Private Equity firms have over 25 Market Data vendors in their portfolio, according to Concertiv Insights. Understanding each vendor’s product and ensuring your firm is getting the most out of each provider can be a challenging task. When evaluating market data providers, there are several key factors to look for to ensure that you are getting accurate and reliable data that meets your specific needs. Concertiv’s expert market data professionals highlight these top 5 considerations when seeking new market data providers or when renewing subscriptions to ensure the provider is still the right one for your firm’s needs.
Where is the Data sourced from?
Inquire about where the data they provide is sourced, collected, and verified. Look for providers that have a strong reputation for delivering high-quality, accurate data. Ask about their quality control measures, and whether they have any certifications or third-party audits to ensure the accuracy and reliability of their data. Consider the timeliness of the data you require. If you need real-time data, look for providers that offer data feeds with minimal delay. If you don't require real-time data, providers that offer delayed data feeds may be more cost-effective.
Consider whether the provider offers customization options, such as data filters or analysis tools. This can help you to tailor the data to meet your specific needs and improve your ability to use the data effectively. A key element for positive user experience is data customization. When working with your data provider it is helpful to have analysis tools such as filters to tailor the data to meet your specific needs and improve your firm's overall ability to use the data effectively to find valuable information.
Providers that offer strong customer support and technical assistance is important for your firms' employees to have access to a help desk when needed on a day-to-day basis. Whether it be a chatbot with support tickets or an active responsive support team that can help resolve any issues at hand, this will make a huge difference in your firms experience with the data provider. Along with ensuring active support, the frequency of the data provided in critical. If you need real-time data, identify providers that offer data feeds that have minimal delay. Minimal delay data feeds tend to cost more, so take into consideration what is more important, higher cost with real-time data or delayed data for a fraction of the cost?
Some providers will not let you save your own data, so it is important to find out ahead of time if you are able to load customized data. For providers that do let you store your own data, it is important to inquire about the process and securities for storing your data and your overall access to it is crucial. Verify the data provider’s security measures to protect your data from unauthorized access or theft. For data providers that do have special security protocol in place, Concertiv recommends confirming whether they have undergone any security audits or certifications to ensure your data is protected.
Market Data providers are in the top 5 categories of annual spend for a firm. Identifying what your annual budget for market data providers can be tricky because of the blurred lines for base cost per user seat. Look for providers that offer fair and transparent pricing, with flexible pricing options that can be customized to meet your specific needs.
Concertiv recommends checking online reviews and testimonials from other firms that have used the data provider's services. Look for feedback related to customer support, data frequency, and data quality. This will help you gain insight into the provider's reputation, and can assist you in making the best decision for your firm. Keep in mind, however, that every firm's needs may vary, so weigh the feedback according to your specific requirements.
By considering these factors when evaluating market data providers, you can choose a provider that meets your specific needs and provides you with the most accurate and reliable data possible. Concertiv’s Market Data solutions and services ensure that you are paying the right price, for the right product. Concertiv’s Market Data team negotiates all your firm’s vendor contracts on your behalf through our group purchasing options and preferred partnership rates.
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