The Future of Market Data: Insights from Recent Research
The landscape of asset management is rapidly evolving, with a pronounced shift towards artificial intelligence (AI) and machine learning (ML) shaping the future of market data consumption. According to new research conducted by SIX, a global financial information provider, and Crisil Coalition Greenwich, a staggering 80% of asset managers believe that AI and ML will be pivotal in driving market data delivery and consumption over the next two years. This revelation underscores a significant trend that is set to transform how financial institutions approach their data strategies.
Research Overview
The annual research, conducted from June to July 2025, surveyed a diverse array of respondents from the US, UK, and Europe, encompassing asset managers, wealth managers, and private banks, with a focus on front and middle-office roles. The Market Data Study, now in its third year, aims to decipher ongoing trends and challenges associated with consuming market data.
Rise of Real-Time Data Usage
One of the standout findings from the research is the marked increase in the use of real-time data. An impressive 65% of respondents indicated they employ real-time data throughout the trading day. This growth is partly driven by the rising trend of 24/7 trading across various asset classes. Moreover, the expanding use of real-time data signals a broader application across functions such as risk management, compliance, and portfolio analytics, illustrating the versatility of real-time data in addressing contemporary market challenges.
Increased Spending on Market Data
The findings indicate a projected rise in overall spending on market data. Nearly 70% of respondents anticipate a budget increase ranging from 1% to 5% in the coming periods. The areas experiencing heightened budget allocations include index data, risk and regulatory data, and crypto data. This uptick is mainly attributed to a quest for improved data sources, emphasizing a trend where over three-quarters of buy-side respondents are in search of more historical tick data essential for market and trade surveillance.
Cloud Adoption and Data Delivery Mechanisms
The research highlights a significant surge in cloud adoption among asset managers. With 63% of participants now utilizing public cloud infrastructure for data connectivity—up from only 30% in 2023—it is evident that firms are gravitating towards more agile and scalable data delivery solutions. Furthermore, 53% of respondents believe that cloud technologies will enhance the delivery of streaming data, reinforcing the cloud’s role in the future of market data.
In terms of data reception, firms are increasingly favoring market data vendors for their systems’ data feeds, contrasting with last year’s preference for direct-from-source data. This shift reflects a growing recognition of the benefits that third-party vendors can provide in terms of reliability and efficiency.
Expert Insights on Market Data Trends
Matthew Nurse, Head of Market Data Financial Information at SIX, commented on the transformative potential of technology in capital markets. He emphasized that "the intersection of technology and data is reshaping how capital markets operate." The swift adoption of AI and ML, combined with increased reliance on cloud infrastructure and real-time data delivery, illuminates a significant trend toward more scalable and cost-effective data delivery models. Nurse forecasts that data will continue to be a critical driver of investment decisions and risk management.
David Easthope, Senior Analyst for Coalition Greenwich Market Structure & Technology, stressed the importance of robust data management practices. He advises that firms focus on ensuring the quality and accuracy of their data to leverage market data effectively, especially amidst a complex regulatory environment.
Further Exploration
For those interested in deeper insights into this evolving landscape, the full report from the SIX research is available here.
Source: SIX
Stay tuned for more updates on how technological advancements are influencing the financial world!