archive.mddl.orgrespresentationsHARTLEY_WRGMMD_

							Redistribution of Data: Who Owns the Data?
      James E. Hartley – Chief Technologist, FISD
     WRG Managing Market Data, New York, 2005/11/30
         A Quick Note About FISD…
    Financial Information Services Division

• Global Industry Trade Association
   – www.fisd.net


• Three Major Agenda Areas:
   – Securities Processing Automation
   – Market Data Business Issues
   – Government and Regulatory Affairs

• Constituents: Sources, Distributors, Users, Enablers
     James E. Hartley, Managing Market Data, New York, 30 November 2005   2
         Feedback Solicitation
Consider These Derived Data Scenarios

• “Vendor” I11L Index:
   – Prices of 200 stocks from 4 “Sources” (LSE, NYSE, DB, Tokyo)


• “User” 10 Point Composite:
   – Index derived from 10 of the above type of indices coupled with
     value analysis of the stocks


• “User” AlgoMagic TrendLine:
   – Complex formula using historic data from combination of above



      James E. Hartley, Managing Market Data, New York, 30 November 2005   3
          Questions for Feedback?


• Does the “Source” own the stock price?
• Does the data belong to the “Source”?
  – Source may be entitled compensation per receiver
  – Is that a human, a computer, a program, a wallboard?


• Does the computation obscure the original data?
  – Thus “source” gets one-time compensation
  – Does it matter?
  – Who owns the result?
    James E. Hartley, Managing Market Data, New York, 30 November 2005   4
         And the BIG Question…



  Who refused to answer
  because they knew that
their legal department would
            frown?

 James E. Hartley, Managing Market Data, New York, 30 November 2005   5
             Who Owns the Data?


            SEEK
COMPETENT LEGAL COUNSEL
              On
 Intellectual Property Rights

  James E. Hartley, Managing Market Data, New York, 30 November 2005   6
        Let’s Look at Another Topic
      (that’s more socially acceptable)

•   Creationism vs. Evolution?
•   War in Iraq? Afghanistan? Terrorism?
•   The Swiss Navy?
•   Rebuilding New Orleans?

• Because of the formation of the industry, there
  is no easy consensus or path forward
• And there is no “end” in sight. Oi.
      James E. Hartley, Managing Market Data, New York, 30 November 2005   7
             Consensus? Standards!


• Housing Market in the US:
  – Street address assigned by Government
  – Multiple Listing Service (MLS)


• International Phone Dialing

• The INTERNET


     James E. Hartley, Managing Market Data, New York, 30 November 2005   8
     The Development of Standards
          Three Basic Models

• “Build it and they will come”
  – All of the Internet enabling technologies
  – HTML hiccup: Microsoft vs. Netscape
  – Refine as necessary – EVOLVE


• “De Facto”
  – First (or heavyweight) sets without real competition


• Consensus Development – ala ISO
     James E. Hartley, Managing Market Data, New York, 30 November 2005   9
          Who Sets the Standards?


• Researchers in Academia
• Nerds in Their Garage

• Thinktanks – for government or business

• Clearly Advanced Technology or Marketing

• Consortiums of Like-Minded Organizations
  – Be wary of collusion!
    James E. Hartley, Managing Market Data, New York, 30 November 2005   10
            Derived Data Conundrum


• You are in the game or you are not
  – Thus over a barrel or hiding in the corner


• Current legal precedent not definitive
  – And each case is usually entirely unique


• Rules not consistent for sources of distributors
  – And a standard could definitely be used here…


     James E. Hartley, Managing Market Data, New York, 30 November 2005   11
Contact Information:

             James E. Hartley
      Chief Technologist, SIIA/FISD
    jhartley@siia.net, +1 303.322.1393
http://www.fisd.net/ http://www.mddl.org/

                 Tom Davin
            Director, SIIA/FISD
      tdavin@siia.net, +1 202.789.4465
   James E. Hartley, Managing Market Data, New York, 30 November 2005   12