How can asset managers and banks leverage data? – An interview with Finalto’s David Hastings
David Hastings, a key contributor to ‘The Power of Data’, the latest edition of the Finalto Broker Series, offers insights into how to benefit from data as well as to leverage data in order to achieve fiduciary responsibilities.
Finalto, the renowned provider of trading and liquidity solutions to the financial brokerage space, is committed to sharing the knowledge its team has accumulated through decades of experience to promote industry education, with a focus on the essential role of data in modern brokerage firms.
In July, the company released the next installment of its Finalto Broker Series, this time covering ‘The Power of Data’, which explores the role of data in the modern brokerage sector.
A key contributor to this edition was David Hastings, Data Sales Manager at Finalto and former Bank and Financial Institution Liaison Officer for the ACI, who has accumulated a wealth of experience around the practical application of data in the financial services industry.
FinanceFeeds had the opportunity to publish an interview with Finalto’s David Hastings, where he offers insights into how people and businesses can benefit from data, but also how data can be used to help organizations achieve their fiduciary responsibilities.
How can Asset Managers benefit from using market data?
Asset Managers would benefit from using our market data in a couple of different ways.
The first way is using it to verify where the market is trading in the specific currencies executed due to portfolio rebalancing. This can help them achieve their best execution requirements.
The second way would be to gain market price intelligence, which can then be used to understand where the markets are physically trading.
This information could potentially show sentiment and direction of the market movements which can assist with execution timing. As Finalto is independent, and therefore not a part of the Asset Managers execution panel banks, we can provide exactly where the market is trading allowing an impartial view.
Why would Asset Managers want to achieve best execution?
Asset Managers have a fiduciary responsibility to achieve best execution. Executing at the correct market price is one key element of this process and our independent verification rate will be one way of documenting it.
The FCA are focussing on Best Execution within Asset Managers and at some stage it could become part of their policies of guidance, so it is important to begin aiming for it as soon as possible.
How can data help asset managers assess trends?
Data is important to asset managers in a number of ways. If an Asset Manager has an ALGO execution strategy within the execution desk, our anonymised client execution could be a benefit to them in back testing models. Our anonymised client execution data is exactly what it sounds like; real client execution data with all identifying information removed so that it accurately reflects behaviour and is ideal for algorithms.
This data could give an insight into market trends, as it provides historic real-time execution data, which if used as part of the execution algorithm calculations will assist with when to go to market.
What data can Finalto provide to asset managers?
Finalto can provide our full suite of products real-time or historically. Assets include FX, Cryptos, Metals, Indices and Equities. Or we can provide a subset of data depending on the Asset Management’s requirements.
What makes our data competitive?
Market-leading data is where Finalto stands out. We have 10 years of experience providing a blend of retail and institutional sources, includes execution and historical data and our daily volume is extremely high. We also cover a breadth of instruments, including FX, Cryptos, Metals, Indices and Equities. Finalto Data helps you bring the world’s markets into focus.
How can regional banks use market data from Finalto?
Regional Banks that are at the beginning of adopting an electronic pricing strategy, could use the Finalto market data price to verify and sanity check the prices that are being produced and provided to their customers and market participants. This extra layer of security helps to prevent wrong prices being made and avoid potential losses.
‘The Power of Data’ covers compliance, market analysis, and customer segmentation
‘The Power of Data‘ is available for industry professionals looking to gain in-depth perspective at the ever-increasing significance of data in the brokerage landscape. Topics explored in this whitepaper include the role of data in risk management, meeting evolving compliance expectations, market analysis, and customer segmentation.
The publication highlights the intricate relationship between data management and regulatory adherence, explores the challenges faced by brokerage firms in ensuring that data practices meet the stringent requirements of financial regulators, and offers insights into best practices for data compliance.
Additionally, the white paper examines artificial intelligence and machine learning, two of the most transformative technologies in data analytics, and explores how these technologies can provide brokerage firms with enhanced analytical capabilities for more precise market forecasts and trading strategies.
Lastly, the Finalto paper on the power of data unpacks how it can be leveraged to create personalized services for clients, which not only meets their specific needs but also fosters long-term relationships. This chapter looks at potential future developments and how these changes in technology and regulation may impact data management practices.
