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Quants Buying Data
Matt Ober
September 07, 2023
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What really matters when selling data to quant funds? There are a lot of factors, but if you know the basic things that matter, you can quickly ballpark the value of your data.
5 Things that Matter to Quants Buying Data:
History- How much historical data do you have? 2 years at the minimum. 5 years are better. 10 years is fantastic. The more history, the more value, the more $$$ you can charge.
Coverage- What companies does your data cover? S&P 500 at a minimum (debatable, but this is the safe answer). The entire US is better. Global is great!
Frequency- How often does the data update? Intraday is fantastic, but not necessary for all funds and in some cases not preferred. Daily is great. Weekly/Monthly/Quarterly- not that exciting. It is still possible to sell with infrequent updates i.e. fundamental data, but in many cases its not ideal or exciting.
Data Points- How many data points per ticker? The more the better. Hundreds of data points is ideal. Multiple identifiers is great i.e. Cusip, ISIN, Sedol, Ticker, BBID
Delivery- How do you deliver the data? API is great. Snowflake is even better. FTP is OK. Front end login only- not gonna work.
Bonus points if you have a white paper or a document showing performance using your data.
Selling data is hard. Figuring out how much to sell your data for is hard. Having an understanding of what is important to your clients shouldn’t be.
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