Rockland, Massachusetts, October 10, 2025 – Cutter Associates, a global consultancy and research firm serving the operational, technology, and client communication needs of the investment management industry, released the findings from its 2025 Market Data Administration (MDA) Benchmarking survey. The survey revealed that asset managers and asset owners have shown slight improvements in their MDA programs since we last conducted the survey in 2023, but many of the same struggles remain.
Over half (56%) of participating firms cite staying compliant with vendor contracts as the top issue they face, followed by managing the increasing number of market data providers (41%) and lack of resources for MDA activities (34%). The survey revealed significant improvements in workflow and collaboration, with only 22% of firms identifying it as a top challenge, down from 39% in 2023. Likewise, responding to inquiries on acceptable data usage is now a lesser concern, down to 13% compared with 27% in 2023.
“The improvements we see are likely attributed to the ongoing work that firms have undertaken to enhance their MDA operating model and/or business processes,” said Angela Centeno, Cutter Research analyst and report author. “Firms stated in the 2023 survey that they planned to tackle these issues in the next year or two, and clearly, they followed through with those plans and are now experiencing the benefits.”
But there is still room for improvement. Some areas in particular stand out as insufficient according to Cutter’s proprietary Capability Model, which scores how firms are performing in specific operational and IT functions. Data services and reporting, vendor management, and inventory management are all areas needing attention.
“Firms rely on these Benchmarking studies to identify areas of improvement, as well as verify areas where they excel,” said Gina McCafferty, Head of Research at Cutter Associates. “It is extremely important for firms to know how they are performing compared to their peers, and these findings deliver that information in very specific categories.”
Near-Term Plans
The survey asked firms about their plans to address MDA challenges in the next 12 to 24 months. The vast majority (84%) plan to review data services and contracts, as well as optimize their MDA operating model and/or business processes. Additionally, 81% have plans to try to reduce market data costs.
“We saw a large increase, from 18% in 2023 to 25% in 2025, in firms that plan to outsource MDA services,” said Centeno. “We expect that the percentage of firms outsourcing at least some MDA or contracting for a one-time analysis will increase as the challenges of managing market data and having enough resources continue to rise.”
Spend and Cost-Savings Initiatives
Marketing data spend varies widely based on factors such as firm size, firm type, and types of assets managed. Firms spend the largest percentage of their market data budget on terminals (31%), indices (19%), and research (19%).
Firms shared the techniques they implemented to try to reduce market data costs, and how successful those measures have been. The top cost-savings tactic employed by 94% of firms is analyzing contracts for redundant user licenses, which resulted in significant savings for 10% of firms and moderate or some savings for 83% of firms. Almost all (91%) reported that they negotiated long-term contracts for more favorable terms, with 24% seeing significant savings and 76% achieving moderate or some savings – making it the most successful cost-savings technique.
AI Use
Developments in technology, most notably AI, are prompting firms to explore new ways to modernize MDA. More than half (56%) of firms are considering or implementing AI in the contract legal review process. Another 40% are considering implementing or are in the process of implementing AI to analyze contracts and identify redundant user licenses.
For more information, the survey report and Executive Summary can be found here.
About Cutter Benchmarking
Cutter has conducted over 80 Benchmarking surveys that span the investment management lifecycle. Each survey is designed to reveal critical insights to help firms see how their processes and practices stack up among peer firms and Cutter’s Capability Model, highlighting areas for improvement while reinforcing areas of strength so that firms can save time and money, improve efficiencies, and reduce risk.
About Cutter
Cutter Associates LLC serves the operational, technology, and client experience needs of the global asset and wealth management industry, providing companies with the tools and services they need to be successful. With deep industry and domain experience and expertise, Cutter Associates provides global consulting, independent research, exclusive members-only events, process benchmarking, and a vast peer network. Headquartered in Rockland, Massachusetts, and owned by Tokyo-based NRI Group, Cutter Associates offers services in the United States, Canada, Australia, United Kingdom, European Union, Singapore, and Asia. For more information, visit us at www.cutterassociates.com and connect with us on LinkedIn.
Media Contact:
Media Contact:
Jennifer Murray
Cutter Associates
(781) 223-5251
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