It has become clear that there is a shift away from the expensive, all-in-one, type of financial solutions for real-time traders, passive investors, and those tangentially interested in financial market information.
There is a sort of rudimentary way most of us cobble together niche parts of various services to build our own information ecosystems. Everyone has their style, their inputs, their signal weights, their risk, and their trusted sources. It is important for those people to have the accurate info they need to make decisions. Paying $2,000 per month for the full Bloomberg suite is absurd when, for example, you only need 5% of what their services offer.
Morgan Stanley recognizes this. The firm is expecting to see the shift away from expensive data terminals impacting the businesses of Thomson Reuters and FactSet. Over the course of the next 5 years "structural changes and disruption in market data terminals could take $3B out of the industry," wrote analyst Toni Kaplan in his April 25th note. Kaplan sees customers choosing to pay for niche offerings (trade-downs) and cannibalization along with margin compression resulting from a deflationary environment, predominantly impacting FactSet, but also McGraw Hill and Thomson.
Outlets that are disrupting the way information is disributed to the mass are Estimize for earnings, Investing.com for economics calendars in real-time, Benzinga for datasets (EPS, Analyst Ratings, Market Moving Exclusives, SEC Filing delivery speed and filtering functionality), Bloomberg (Gadfly and First Word), Reuters (Eikon Exclusives), TD Ameritrade (real-time charting and desktop real-estate optimization), Selerity (Rig Counts and real-time earnings), Cheddar (Short, informative ideos on diverse distribution platform), and ChartIQ (heat mapping and real-time intraday industry/sector performance ranking) to name a few.
These relative newbies to the space have a lot to offer as replacements to the households names currently available. For example, Benzinga offers SEC filings up to 90 seconds before they are available on prevailing platforms, Selerity scraps previous links to get earnings before they are scheduled for distribution (think Twitter EPS), and Investing.com offers global economic data in a real-time and easy-to-consume format.
You can come and meet the people behind these new financial technology companies at the Benzinga FinTech Awards Gala on Tuesday, May 24th at New York's Tribeca Three Sixty° For #ZeroHedgeMob members who want to come say hi (I'll be there), grab some food & drink, and do some DD on the new kids, click here for a 20% discount by entering “ZeroHedgeMob at check out.