![]() ![]() Initially CIQ was just the website, and they bought their data from competitors. CIQ, for example, is (or was back then, anyway) a tiny shim of a crappy tech company in New York and thousands and thousands of people doing data collection in India. ![]() All of these companies are vertically integrated. One other giant stinking reason it's really hard to innovate here is data. ![]() It's hard to attack this with modern methods. People like it in part because it's insane. His superiors explained to him very slowly that although the terminal looks like obvious insanity to a tech person, it's embedded in the culture in finance. In my last interview with a director, he described an experience he had rewriting quite a bit of the Bloomberg terminal as a modern (for the time anyway) Windows app as some kind of skunkworks project. (I recently reminisced a bit here: )Īt one point I was offered a job with Bloomberg that I didn't wind up taking. ![]() I worked for CIQ from 2003-2007, it was not such a great time. Having never used or seen Bloomberg, I immediately started describing a system of keyboard shortcuts, to which my interviewer responded that I was basically just describing Bloomberg terminal. They asked me to design an interface that would allow people to access financial information quickly. Even if you create a perfect replica of Bloomberg, would I stake my clients money on your track record? Even with a good track record, why would I not trust Bloomberg when it's the de facto standard?Ĥ) IP? not sure about this one, but I imagine there are a lot of features baked into Bloomberg with legal protection.ĥ) The cost is insignificant for most of wall street.įunny story: on a whim I interviewed with capital IQ while I was in college. It's kind of like open-sourcing security pricing monitoring.ģ) Reputation. Also, Bloomberg leverages its network to constantly monitor prices, so pricing problems are discovered REALLY quickly. Bloomberg messenger is the way to communicate in finance. Bloomberg was incredibly reliable on the other hand, and their support team responds to issues within minutes.Ģ) Network effects. When you start to go outside of the US, there's some really bizarre logic. Connecting to hundreds of exchanges with thousands of securities is difficult. Despite all its resources, Reuters proved time and again to have pricing issues. I imagine that when a major pricing error occurred on any exchange, I would find out within 30 seconds to a minute. I worked on a support desk where I had both Reuters and Bloomberg (at a cost of something insane, probably close to 100k/yr). Traders need a highly reliable connection. If I'm a trader with 300MM in my pocket, then I need access to information. There are a couple reasons why it's really difficult to disrupt this industry:ġ) An mvp won't cut it. ![]()
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