Bloomberg terminal and Thomson Reuters are certainly ripe for strong competitors.They are basically operated as monopoly for decades.Yc,developers and others should take on this challenge.
http://www.nytimes.com/2015/09/10/business/dealbook/the-bloo...
> Its not like you can throw together some trading system with an eventually consistent datastore in the back. Loosing a couple of trades without an audit trail crashes markets.
That's not consistency, though, that's durability. Consistency in banking is basically the part where you don't allow people to spend money twice. That can be "eventual" and violating it can be OK under some circumstances, like when your bank issues you an overdraft (and applies a fee) or when your airline sells too many seats.
So the eventually consistent data store in the back is fine... as long as it's durable and as long as you're willing to invest man-years of effort in understanding the implications of your selected consistency model so that you don't screw it up and can perform operations which are compliant with some set of business rules that the business understands and approves of, naturally.
A trading platform must have a 1:1 mapping of buyer to assets when trades are agreed. You cannot have a situation where two people buy the same share, as it requires unwinding. A trade must be atomic.
traders want to see all the bids/asks of the whole market. Otherwise you'll effectively have a random assortment of tiny markets under one supposedly united trading platform.
Thats the other thing, trades need to be reversible. There is a good correlation between massive trade volumes and the need to reverse transaction. Having an eventually consistent model is just not going to work.
Being overdrawn is not eventual consistency. The act of an overdraft is not a failure of a bank to properly account for your balance, its a deliberate business move to generate cash.
So no, its consistency, one price, one bid, one ask.
The concept of overdrafting is a combination of modern business rule and ancient technological limitation (dating back to before-computers when accounting was manual and checks and checkbooks were also big deal, which his hella-eventually consistent). It can still serve as a useful metaphor, regardless.
But if you care about operating the EXCHANGE ITSELF then your allusion to the audit trail is a bit of a red herring, isn't it? In fact, the data store itself becomes pretty irrelevant for the live trade-matching - presumably you shard just the hell out of your data, keep the working set in RAM, keep most of your stuff colocated in the same place and just solve for availability by doing something crazy and hardware-intensive like having hot spares for everything.
And support. Being able to pick up the phone any time at quickly get someone on the other end who really knows their shit is a big thing you're paying for.
First it's Thomson Reuters. Second, YC has little chance in this market which requires large capital for the data feeds, and has enormous incumbent advantages. Third, FactSet is a player there, it's not even a duopoly.
There is no such thing as "incumbent advantages" for market this is based on technology that could be duplicated.The same is applicable to payment system that paypal,stripe and others take on now.Same with car industry that Telsa is working on.Did you read the linked article about MONEY.NET.The thing is that developers have not been paying much attention to nuts and bolts of these terminals,until lately.http://fortune.com/2014/03/20/can-the-bloomberg-terminal-be-...
Your better & duplicated technology is generally no match for the incumbent's connection, trust, familiarity, and fully expense-accounted sales team. That is the incumbent advantage and why Oracle wins so often.
Its very much like message boards. HN and Reddit have the hot hand and the connections overcome better technology of other boards. Once the connections become too toxic, people will migrate to the next thing. Then you might have a shot, but the group with the best connections will probably be the next thing.
No incumbent advantages? Not even an advantage associated with the reduced financial risk of operating a money-making business in the space? No name recognition? No established working relationships between Sales and Important Customers? No firm-specific human capital in the form of all the little things their employees know about how business in this sector works?
I recently read about this company in the NYTimes which is trying to do just that: https://www.money.net/
$99/mo/user vs $21,000/year/terminal. Wow! I wonder what other kinds of entrenched, expensive products like the Bloomberg Terminal are in need of competition. I think this requires industry-specific experience to know, however.
Really interesting...this is the first I've heard of them (I'm nowhere near the finance industry). I wish finance companies weren't so tight lipped, I can't find anything about their tech stack.
YC style companies are great for consumer software, but BB is directed at financial companies, which are very conservative and put a lot of value in support. There is no way to win in that space by being cheap, you need a lot of investment to provide mature code and high-quality support by real people.
Its not like you can throw together some trading system with an eventually consistent datastore in the back.
the entire finance industry is based on trust. Part of that is trust that bloomberg is correct.
Loosing a couple of trades without an audit trail crashes markets.