Services · Cost optimization
Reduce market data spend by 15–30%
without losing capability.
Market data is the second-largest technology line for most institutional firms, and the least disciplined. Vendor price increases of 5–15 percent a year are accepted while usage flatlines. Paraxis turns the line back on itself.
The cost crisis
Why this keeps happening.
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Complexity by design
Vendors structure their commercial models around hundreds of SKUs, usage-based pricing, and enterprise-wide agreements that make it difficult to read true cost. The complexity is not accidental.
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No internal market data team
Most firms do not have dedicated market data leadership. The responsibility lands on IT, operations, or trading — none of whom hold the specialized knowledge needed to challenge a vendor effectively.
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Fear of disruption
The perception that any change will break trading or investment workflow paralyzes decisions. Vendors price into that perception. Most of the change we run never touches a single user-facing screen.
The methodology
Four steps. In this order.
- 01
Forensic cost analysis
We read every active invoice, contract and entitlement file line by line. Usage analysis at the user, application and asset-class level. Each finding becomes a line item with a dollar figure attached.
- Invoice reconciliation across every vendor
- Contract-term analysis surfacing unfavorable clauses
- Usage analysis identifying unused entitlements
- Benchmarking against the rates we know the vendors will accept
- 02
Optimization strategy
The analysis produces a prioritized roadmap, not a memo. Quick wins are separated from the medium-and-long-term path. Each step has an owner, a timeline and an expected return.
- Quick wins: immediate savings from retiring unused services
- Renewal targets: specific commercial terms and pricing positions
- Service consolidation across overlapping vendors
- Alternative-data evaluation where the current spend cannot be defended
- 03
Vendor negotiation
We run the negotiation on the client’s behalf. We hold the vendor relationships, we know the cost structure, and we know which terms move in writing and which never will.
- Direct negotiation with vendor sales and licensing teams
- Knowledge of vendor margin profile and discount authority
- Multi-vendor tension where the contract permits it
- Audit terms, redistribution rights and assignment clauses read together
- 04
Implementation and monitoring
Savings only count if they survive the next twelve months. We hand back a maintained inventory, an audit-defense file, and a procurement calendar that runs itself.
- Change management and user communication
- Invoice monitoring to verify the savings actually arrive
- Quarterly cost review to prevent spend creep
- Documented controls so the next staff turnover does not unwind the work
Typical results
What the work produces.
- 15–30%
Cost reduction
Within the first twelve months. Larger firms with $10M+ annual spend frequently exceed 25%.
- 60–90 days
Time to first savings
From kickoff to realized savings. Quick wins land inside the first thirty days.
- Zero
Service disruption
Trading and investment workflow continue. Optimization happens behind the operating model, not in front of it.
- Standing
Governance
We hand back the controls and the calendar. The work survives the next staff turnover.
Who we work with
Sized for the work, not the brochure.
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Asset managers
Long-only, multi-strategy and ETF providers compressing the economics of market data as fees compress. We hold data quality while bringing cost in line with the revenue line.
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Hedge funds and private equity
Alternative managers facing LP scrutiny on operating cost. We deliver defensible optimization without compromising the data inputs the investment process depends on.
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Investment banks and broker-dealers
Sell-side firms managing regulatory cost allocation and pressure on non-revenue-generating expense. We optimize while holding the regulatory compliance posture intact.