Advisory for data Consumers

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As the need for more data content accelerates, it is increasingly important to manage third-party data costs and usage rights, leveraging well tested industry best practices. Watchdog Data Services realizes that a typical "one-size-fits all" approach in tackling data costs and licensing is often not is not a viable alternative for many clients.  Rather, client needs tend to be sporadic and needs can change throughout the year as a result of changing business priorities, challenging contract negotiations and surprise vendor/exchange audits. To address these challenges, Watchdog Data Services offer a cost-effective retainer program. This program enables clients to leverage our expertise and our strong network in a myriad of areas, as needed. The result is for clients from small and mid-sized investment managers to FinTechs to have an executive level market data resource always available at a fraction of the cost of hiring a resource.   Our capabilities include: ​

• Help existing internal team on identifying “low hanging fruit” data savings by precisely aligning commercial agreements with actual usage with the proper negotiation skills.
• Conduct vendor negotiation education programs with the focus on optimizing spend while simultaneously improving long-term vendor relationships.
• Leverage our vast and executive level network of data suppliers, exchanges and FinTechs to effectively negotiate key and strategic data sourcing agreements.
• Prepare clients for vendor and exchange audits utilizing our pre-audit best practices.
• Research alternative data sources and enabling FinTech for strategic initiatives. 
• Develop plans assisting clients with moving to a market data managed services model
• ​Utilize our proprietary intelligence through our extensive network of data providers to continuously identify lower cost high quality data sourcing alternatives.
• Develop policies and processes to more effectively manage data costs and usage risk using our proprietary 12-point data licensing checklist and business flows.

Clients continue to utilize third-party market data in an increasingly sophisticated manner and often outside a data vendor’s contractual restrictions. Equally, data vendors and exchanges are continually evolving their policies and usage restrictions in order to enhance revenue opportunities. These two major challenges require implementing a strict data usage risk mitigation program. If left unchecked, organizations that license third-party data can quickly discover that although their costs may be under control, their data usage profile could put the company at great financial, operational and reputational risk. These risks often lead to vendor audits with significant settlement costs.

To address this challenge, Watchdog Data Services, in consultation with the 10 top market data and index providers developed a 12-point data licensing model with the express focus to quickly help clients managing even the most sophisticated vendor and exchange usage policies and restrictions. With this model and our experience, we are well-positioned to help clients address today’s data licensing challenges.

Data vendors and exchanges are increasingly monitoring usage by its clients through formal audits and usage assessments. We recommend that clients fully assess this risk profile through our Pre-Audit Data Usage Assessment Program. A customized program leveraging resources steeped in executing vendor and exchange audits will help clients identify where the usage and reporting risk exists.

1. We start by targeting the data vendors and exchanges that provide the most risk to the client. 
2. We then thoroughly review usage and contractual obligations consistent with best-practices employed by leading exchanges and vendors today. This assessment leverages our 12-point data licensing checklist to ensure all aspects of licensing is covered.  
3. Finally, we review and all reporting and declaration requirements, derived data usage and the rights associated with any onward distribution of the vendor’s content.
4. After this assessment is completed, Watchdog Data Services provide recommendations and advise and/participate on any vendor negotiations utilizing our post-engagement retainer program.