Finding Data in the Dark (Pool) – Nomad Data’s Free Data Search to the Rescue
Nomad Data’s Free Data Search is taking another large step towards increasing liquidity in the data market. Unlike many other markets, the data market has a lot of sensitivities. Buyers don’t want others knowing what data they’re buying, or for what purpose. In an age of increased litigation and media scrutiny, many data sellers also want to hide their identities. So how did Nomad Data build a functioning market under these circumstances? It’s been done before in what are called Dark Pools.
Dark Pools are private exchanges or forums for trading securities, not accessible by the public. They are used primarily by institutional investors to make large trades without exposing their intentions to the public market, which could result in price movements against their interest before they can complete their trade. These trades are executed away from traditional stock exchanges, thus the term "dark," as the details of the trades, such as the identities of the buyers and sellers, the price, and the volume, are not made public until after the trade is completed. This anonymity and confidentiality parallels the needs of the data market, where both buyers and sellers prefer to keep their transactions discreet to avoid influencing market perception or revealing strategic intentions.
A Dark Pool, but for data?
Incorporating the concept of Dark Pools, Nomad Data operates on a similar principle, providing a secure, anonymous platform for matching. Buyers and sellers can register their data needs or offerings with Nomad, while Nomad’s platform facilitates the match between buyer and seller. In this model, both parties can be connected without knowing the other’s identity ahead of time. Unlike a traditional dark pool, in Nomad Data’s network, the two parties do eventually share their contact information, although that doesn’t happen until they have both opted in.
By borrowing from the framework of Dark Pools, the data market can achieve a balance between transparency and privacy, ensuring a functioning market under the veil of initial anonymity.
Because of the diversity of both data types and data needs, matches in a data dark pool can sometimes take much longer than in an equities market where the asset in question is a publicly-traded stock. Perhaps a large furniture retailer is looking for a feed of wholesale furniture prices in Europe. At the time of the search there may be several furniture wholesalers considering monetizing this data. They may take months or even years to come to market and have little ability to market the data since they don’t want it to be public that they are selling it. Unlike a typical equity Dark Pool, data Dark Pools can take much longer to match, and sellers may not be willing to sell to all buyers.
Free Data Search brings unprecedented liquidity to data Dark Pools
Until now, Nomad Data has charged users a monthly fee to use its data search platform. This works incredibly well for most data searches where the data is already on the market and the buyer is confident they will be matched successfully. Where it runs into trouble is in situations where the supply hasn’t yet come online. With the advent of Nomad’s Free Data Search, buyers looking for “needle in the haystack” data can create a data search at no cost. They only pay when the seller finally shows up. This essentially allows data buyers to create “watchlists” for key data they care about and then be notified when it becomes available.
Free Data Search brings significantly more liquidity to the buyer side of the Nomad data market to match up with the nearly 3000 vendors currently selling on the platform. We expect it to lead to more efficient connections between the growing set of corporations looking to buy and sell data.
Nomad Data's pioneering approach, marrying the concept of Dark Pools with the intricacies of the data market, has illuminated a path forward where privacy and efficiency converge. By introducing a free search service, Nomad not only democratizes access to elusive data but also injects unprecedented liquidity into the market. As this innovative platform evolves, it will reshape the landscape of data transactions, ensuring that the future of data exchange is both secure and seamless. This leap forward paves the way fora new era where the value of data is unlocked more broadly, promising a brighter future for the data market.
