Choosing Data Cost Optimisation Software Without Disrupting Existing Systems

A financial institution may identify substantial savings in its market data contracts only to discover that implementing those changes requires expensive modifications to existing applications. Vendor feeds support established workflows across trading and portfolio management, making even straightforward subscription changes difficult to execute. Software intended to reduce market data expenditure must address both the cost of information and the expense of changing how it reaches users. Procurement executives need to establish whether projected savings remain worthwhile after implementation costs are included.

Market data spending can become difficult to control when departments independently acquire overlapping information. Multiple suppliers may provide similar reference data or pricing content, while individual teams retain subscriptions established around historical requirements. Reducing this duplication requires visibility into what information is purchased and where it is consumed. Buyers should examine whether software can identify overlapping content across vendors and support consolidation without compromising the information required by different departments. Terminal subscriptions deserve particular attention when expensive access arrangements remain assigned to employees whose daily responsibilities no longer justify them.

Existing application dependencies complicate supplier consolidation. Financial institutions often operate systems developed around specific data formats and delivery arrangements. Replacing a feed may require changes to application interfaces or involvement from external software providers. These additional expenses can absorb much of the anticipated reduction in licensing fees. A data management platform capable of normalising incoming content and maintaining established delivery formats can reduce the work associated with changing suppliers. Implementation proposals should account for internal resource commitments rather than presenting subscription savings separately from project costs.

“EXFIDANT’s MDH normalises information from different market data suppliers, allowing financial institutions to change data sources without requiring substantial modifications to existing applications.”

Data reuse introduces another requirement when departments apply different valuation rules. Risk teams may require prices captured at particular times, while settlement processes depend on end-of-day figures. A shared information repository should accommodate these differences without forcing every department into identical validation procedures. Buyers should examine how pricing rules are configured and whether the system can preserve distinct datasets for separate business purposes. Such flexibility can limit duplicate purchases while maintaining the calculations required by existing applications.

Cost reduction also requires a credible starting assessment. Institutions may recognise excessive spending without knowing which contracts offer achievable savings. Software procurement based on a broad reduction target can leave implementation teams confronting technical constraints after the purchase. A preliminary review of vendor contracts and consumption patterns helps establish realistic priorities. Executives should require a clear account of the work involved and how savings will be verified before committing recurring expenditure.

EXFIDANT develops Market Data Hub (MDH), a modular platform that helps financial institutions control market data expenditure while limiting changes to existing systems. EXFIDANT's MDH normalises information from different market data suppliers, allowing financial institutions to change data sources without requiring substantial modifications to existing applications. Its PX Validation module supports different pricing rules using shared data, while terminal usage analysis helps identify potentially unnecessary subscriptions. EXFIDANT begins engagements by assessing cost drivers and identifying achievable reductions before recommending software modules or implementation work. This approach connects purchasing decisions to measurable savings while accounting for technical constraints. Banks and asset managers managing overlapping vendor contracts or expensive data terminals are particularly relevant buyers.