Nasdaq's CEO says its time for company America to get in on different information, the $7 billion market that is taking Wall Road by storm

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Adena Freidman

  • Adena Friedman, Nasdaq’s CEO, mentioned she thinks there’s a use case for large corporations to make use of different information.
  • Friedman, who was talking at a knowledge convention on Thursday, mentioned corporations might use the information to investigate what merchandise to construct subsequent or perceive how they need to be investing in analysis and growth.
  • Nasdaq, which not too long ago acquired another information supplier, mentioned it might leverage its relationship with corporations listed on its alternate to supply the information. 

Everybody may benefit from somewhat additional information. 

The push amongst hedge funds to faucet into different information feeds has by no means been greater, as corporations look to get any form of edge through the obscure, non-traditional information units. 

Nevertheless, the advantages of other information aren’t essentially restricted to Wall Road corporations seeking to discover new buying and selling alternatives. 

Nasdaq CEO Adena Friedman mentioned she sees ways in which massive corporations may benefit from consuming different information units.

“I believe corporates can use it for aggressive evaluation. They might use it for researching the subsequent factor that they need to attempt to construct or create. They might perceive foundational drivers within the financial system to grasp how a lot R&D they need to be placing behind new issues,” mentioned Friedman whereas talking at a knowledge convention on Thursday. 

For instance, different information units might present insights for clothes corporations contemplating what route to take their newest vogue line, or the subsequent kind of sauce an enormous meals firm ought to put cash behind researching.

Non-public fairness corporations like Blackstone already utilizing such a information to scout for potential investments, in addition to to assist enhance efficiency with corporations already in its portfolio. 

Learn extra: Bloomberg is diving in to the booming alternative-data discipline with a brand new product that’ll assist the market turn into mainstream

The choice information house has exploded over the previous yr, with hedge funds spending billions of a yr on it. The market is anticipated to high $7 billion by subsequent yr, based on analysis supplier Opimas. Consequently, conventional information suppliers have taken discover. Bloomberg not too long ago introduced it could provide entry to greater than 20 different information feeds.

Nasdaq has gotten in on the motion too. In late 2018 it acquired Toronto-based Quandl, which offers different information to among the high Wall Road corporations, for an undisclosed quantity.

Friedman mentioned Nasdaq can leverage its relationship with its three,000 listed corporations within the US and extra 1,000 within the Nordics to supply the information. Nasdaq additionally has an intelligence software geared towards serving to corporations’ investor relations group that has three,600 shoppers who is also out there for different information.

“Now we have a capability to principally make it in order that we are able to ship a lot of these information streams to the corporates as properly,” Friedman mentioned.

Nonetheless, there may be some concern a regulatory crackdown might come to the house from corporations use of other information obtained in questionable methods.

See extra: Hedge funds are spending billions to get an edge by entry to satellite tv for pc pictures and credit-card transactions. Now they concern a crackdown’s coming

Firms aren’t prone to devour the information in the identical manner Wall Road does, Friedman added. Whereas hedge funds are curious about a whole lot of information feeds for his or her varied buying and selling methods, a corporations’ focus can be way more exact on the units particular to their trade.  

“They’ll be the micro customers,” Friedman mentioned. “If we’ve 1,000 sources of data — hopefully on Quandl someday — they are going to in all probability hone in on the 20 which are related for his or her enterprise or trade, however they’d discover it extremely precious.”

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