Frequently Asked Questions

Q: What is Market Data Answers (MDA)?

A: Market Data Answers (MDA) is a consulting and advisory service specializing in managing market data costs, vendor relationships, compliance, and exchange reporting. We help financial firms reduce expenses, optimize contracts, ensure compliance, and streamline their market data operations.

Q: Who is behind Market Data Answers?

A: The firm is led by Scott Villa, who brings over 30 years of experience in financial services, market data management, vendor negotiations, and compliance. Read more about Scott and MDA on our About page. 

Q: What types of clients do you serve / which geographies?

A: We serve financial institutions, trading firms, broker-dealers, asset managers, and other organizations that consume market data in the U.S. and internationally. While many clients are based in major financial centers, we can also assist clients in other regions (subject to regulatory differences).

Q: Why do I need external help managing market data?

A: Because market data is one of the top 5 expense categories in many financial firms. It’s nontrivial to manage: you have evolving vendor contracts, complex audit and compliance rules, and often decentralized usage across departments. We bring focused expertise to centralize, rationalize, negotiate, and ensure you pay for exactly what you need.

Q: What services do you offer?

A: Our main service pillars include:

• Market Data Offering – vendor management, contract negotiation, invoice reconciliation, vendor displacement, contract inventory, cost optimization. 

• Exchange Offering – reporting, audit defense, compliance, liaison with exchanges. 

• Initial Assessment– a “health check” of your current market data state: cost assessment, contract rationalization, invoice review, and a free quote meter audit (if applicable). 

We often package these into engagements (e.g. assessment + ongoing support).

Q: How does the Initial Assessment work?

1. Review – We collect your contracts, invoices, and usage data across departments.

2. Analyze – We reconcile what you’re paying vs what your needs are (identify redundancy, overcharges, mismatches).

3. Diagnose & Recommend – We deliver a findings report with actionable recommendations and next steps.

As part of the assessment, we include a free quote meter audit (if your firm uses per-quote data), which helps you comply with exchange rules. 

Q: Can you help me during a vendor renewal or renegotiation?

A: Yes — one of our core services is contract negotiation & vendor liaison. We leverage industry relationships, deep vendor knowledge, and usage benchmarking to push for better terms, cost reductions, and favorable service levels. 

Q: What if I get an audit request from an exchange or vendor?

A: That’s part of what we do under our Exchange Offering / Audit Defense. We help manage the response, liaise with the auditing body, interpret policy, and mitigate liability.

Q: How do you ensure compliance / avoid penalties?

A: We build or validate your reporting processes, ensure usage entitlements are correct, aggregate & validate reports, and continuously monitor for policy changes to preempt noncompliance.

We also often embed compliance checks into the optimization process to avoid overpaying for unauthorized usage.

Q: What is an audit in the context of market data?

A: Exchanges (or vendors) periodically audit firms to confirm that they are paying for the data usage actually occurring (based on contracts, entitlements, reporting). If discrepancies exist, firms may owe back-charges or penalties.

Q: What is a “quote meter audit”?

A: For firms using per-quote data, exchanges may require you to audit and report usage on a quote-by-quote basis periodically. We assist with designing, validating, and fulfilling those audits. 

Q: How often do audits occur?

A: It depends on the exchange or vendor. Some audits are biennial (every two years), some upon request, or triggered by usage changes. We can monitor your obligations and ensure readiness. 

Q: What are common causes of compliance issues or penalties?

A: Common pitfalls include:

• Using data in unlicensed or unentitled environments or users

• Failing to report usage timely

• Contract auto-renewals with unfavorable clauses

• Overlapping or redundant data across departments

• M&A or organizational changes not aligned with contract terms

• Changes in usage patterns that violate contract thresholds

We work to detect and mitigate these risks proactively.

Q: How much can I save by engaging MDA?

A: While results vary, many engagements yield significant cost reductions via contract term renegotiations, eliminating redundant feeds, renegotiating pricing, and avoiding audit liabilities. We aim to deliver ROI that far exceeds our fees.

Q:How do you charge / pricing model?

A: Our pricing depends on scope (full assessment, ongoing consulting, audit defense, etc.). Some models might include fixed-fee assessments plus success-based components (e.g. shared savings). (You may want to specify your exact pricing approach.)

Q: Will you centralize all my contracts and usage data?

A: Yes — part of our deliverable is often a contract inventory / searchable database of your vendor contracts, pricing, usage terms, renewal dates, and analytics by vendor, department, and user. 

Q: What if my usage spikes or changes over time?

A: We include continuous monitoring, alerts, periodic reviews, and renegotiation support to adapt to changing usage patterns. Our aim is to future-proof your structure.

Q: How does corporate restructuring (or M&A) affect my market data contracts?

A: Mergers, acquisitions, reorganizations or divestitures often trigger contract amendments, transfers, or compliance re-evaluations. We help coordinate with vendors and legal teams to make these transitions smooth and cost-effective. 

Q: If I don’t have any centralized team managing market data, can you step in?

A: Absolutely — many clients come to us lacking a dedicated internal function. We can act as your external “market data center of excellence,” organizing, advising, and building frameworks for ownership going forward.

Q: Will I lose internal control or visibility if you manage this?

A: No — we work collaboratively with your internal teams (IT, Legal, Finance, Compliance). We structure dashboards, reporting, and governance so your oversight remains intact but more efficient.

Q: What is an “automated reporting process”?

A: It’s a system (often involving IT / data pipelines) that automatically collects data usage metrics, entitlement data, and generates the required reports for exchanges/vendors within their windows. We help design, validate or improve these systems for reliability and compliance.

Q: What data / inputs do you need from my side?

A: Typically:

• Vendor contracts, amendments, and terms

• Invoices and billing records

• Usage logs or measurement data

• Entitlement / license data

• IT / system access to reporting pipelines

• Organizational structure (users, departments, locations)

The more complete your data, the faster and more accurate the analysis.

Q: What happens if a vendor refuses to change terms or negotiate?

A: That’s not uncommon. In those cases, we may explore vendor displacement / replacement (finding alternate providers) or negotiate concessions in other parts of contract (e.g. guarantees, reporting, SLA), or structure staged transitions.

Q: What liability do I have if noncompliance is found?

A: You may be required to pay back charges, fines, or penalties as determined by the exchange or vendor. In severe cases, reputational risk or legal exposure may apply. Our role is to reduce or contain those risks.

Q: Are you liable for damages if an audit goes poorly?

A: Typically, you might disclaim ultimate liability for external audits but commit to perform your services with “reasonable care and diligence.” You should ensure that during engagement, both sides understand scope and responsibilities.

Q: How do I get started?

1. Contact us via our Contact page or email (scott.villa@marketdataanswers.com).

2. We’ll schedule a consultation to understand your landscape, challenges, and objectives.

3. We typically begin with an Initial Assessment, then propose an engagement plan.

Q: How long does a full assessment take?

A: That depends on the size and complexity of your organization, number of vendors, and quality of your data. For many mid-sized firms, the assessment phase can be completed in a few weeks. 

Q: What deliverables will I receive?

A: Common deliverables include:

• Findings & diagnostic report

• Recommendations with prioritized action items

• Contract inventory / analytics dashboard

• Revised contract proposals / negotiation support

• Roadmap for ongoing monitoring, compliance checks & governance

Q: What happens after the assessment/project ends?

A: Many clients opt for an ongoing retainer or support arrangement, where we periodically revisit contracts, monitor changes, assist with renewals, and stay ahead of compliance shifts.