FIS Blog

Put an End to Costly Index Licensing

Harald Bina | SVP, group executive, MarketMap, FIS

September 20, 2019

New, All-in-one Tool for Real-time Pricing Offers an Alternative

You know how expensive it is to license price indices from multiple providers, especially if you trade a wide variety of exchanges, financial instruments and asset classes. Each provider has its own fee-collection scheme, which is constantly changing, and audits are becoming increasingly stringent, making compliance a real concern. These fees and surcharges can quickly add up, reducing your profit margins by a critical measure.

According to a recent study by Burton-Taylor International Consulting, which includes detailed reviews of leading index providers such as S&P Dow Jones, MSCI, FTSE Russell and others, global index revenues reached a record $2.7 billion in 2017 – an 18.8% increase year-on-year. This is due to “surging assets under management levels in exchange-traded funds and growing demand for custom indexing solutions,” says Burton-Taylor analyst, David Tabaka. With customization on the rise, there seems to be no cap on how much index providers can charge for their products and services. But there is a solution.

FIS has partnered with TTMzero, an innovative technology and software solutions provider, to deliver independent evaluation of financial instruments directly over the FIS MarketMap platform. Seamlessly accessible from within MarketMap, TTMzero’s real-time data analytics allow accurate calculation of cost and risk factors without the multiple index licenses you currently pay for. With up to 10 calculations per second on more than 1.3 million liquid and illiquid financial instruments from global exchanges and OTC sources, this is as close as you can get to the real index value, for a fraction of the cost.

Anyone who manufactures, sells, buys or deals in derivatives and structured products can benefit from TTMzero’s accurate, independent, real-time pricing data. Here are some areas in which TTMzero evaluated real-time pricing can help you make better decisions:

  • Valuation and risk management
  • Portfolio analytics
  • Regulatory reporting
  • Market Conformity Checks
  • Validation of mark-to-model prices
  • Provision of information to investors
  • MiFID target market definition

FIS MarketMap with the TTMzero content upgrade successfully serves both large and small organizations. As stated by one market data manager of a multinational investment bank, “In addition to superb evaluated real-time pricing data, TTMzero Content accurately computes volatility surfaces for more than 500 underlying financial instruments and allows dividend forecasting based on a large number of implied values. It makes real-time data analytics practical and efficient at last.”

A risk manager at a global sell-side retail and commercial bank concurs, saying, “Thanks to our TTMzero Content-enhanced MarketMap platform, we now have a single, consolidated source of reliable pricing data, and no longer pay hiked prices for established indices.”

For FIS MarketMap users, the cost of switching from your current providers to TTMzero Content is nominal; for non-MarketMap users, the cost of switching is insignificant compared to the benefits.

Whether you are a manufacturer or distributor of investment products, risk controller, asset manager, insurance company, data vendor or online broker, FIS MarketMap TTMzero real-time pricing services provide the information and calculation tools you need to control cost, reduce risk and make accurate, timely investment decisions.

For more information, download the complete FIS MarketMap - TTMzero Content eBook or email us at getinfo@fisglobal.com.