Michael Shashoua: Simplicity and Security

The substance and emphasis of data management operations have evolved over the past few years. As the industry heads into the fourth quarter of the year, aiming for greater simplicity in data collection and production of a “golden copy” is at the top of executives’ minds, even as the data becomes ever more complex, and requires greater effort to keep it secure.
A host of data issues, including those relating to the golden copy, all come back to the data supply chain. Any consideration of whether federated or consolidated data models are better for a firm is affected by how data is sourced. Where it used to be possible to obtain golden copy data from a single, reliable source, now golden copy is typically an amalgamation of multiple sources.
So, again, the data supply chain must be considered. The term “data supply chain” itself is often thrown around casually, without clear definition, so it may mean one thing to a professional using it and another to the colleague who hears it. The term evokes ideas of several data suppliers being used, but that isn’t really it. As John Bottega, the ex-chief data officer who is now a senior advisor and consultant at the EDM Council, says, the steps in the data supply chain really are acquisition, process cleansing, maintenance, distribution and consumption.
In thinking about the data supply chain this way, the processing steps that data undergoes will affect how it can be handled in a federated or a consolidated fashion, as well as how multiple sources of data can be tied together and distributed accurately, most likely internally. Differences in data processing or sourcing from inconsistent supply chains can produce discrepancies right from the start, while putting flawed data into the cloud to feed big data resources can undermine such aspirational solutions.
Governance Considerations
Similarly, when considering data governance strategies, firms must consider how data is handled, whether by service providers or by centralizing data according to a data governance strategy. At Inside Reference Data’s European Financial Information Summit last month, Jacob Gertel, SIX Financial Information’s senior project manager for legal and compliance, considered the importance of data governance in the current regulatory climate.
Considering how to make data available to users becomes more complicated in the wake of new rules aimed at increasing security.
To comply with US Fatca tax withholding and reporting law and work with the Common Reporting Standard used for Fatca reporting, the data that financial intermediaries deliver must be based on data files from their customers, Gertel said. As a result, this data, with its relevance for regulatory compliance, has greater value than it might otherwise have. And, Gertel said, SIX seeks ways to make the data available to users without having to set up new management and distribution structures.
Complications
Considering how to make data available to users becomes more complicated in the wake of new rules aimed at increasing security, such as the European Union’s Cybersecurity Strategy and the European Commission’s Directive on Network and Information Security. Along with these, European regulators want firms to demonstrate that they have appropriate systems and structures in place for effective data protection.
The directives also require firms to know what their IT partners or vendors are doing about data security. “We all understand that there are speed-to-market and speed-of-compliance challenges from regulators, and global regulations are becoming increasingly strict,” explains Dan Crisp, managing director, EMEA, information risk management at BNY Mellon.
The data supply chain, especially its processing component, is a layer that underpins data governance strategies. When firms draft a governance plan to handle data, that must be done via data supply chains. Data format standards like the CRS for Fatca, and security directives for protecting data, like the EU Cybersecurity Strategy, will in turn shape these governance plans. No single part of data management changes by itself in a vacuum.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
Waters Wavelength Ep. 313: FIS Global’s Jon Hodges
This week, Jon Hodges, head of trading and asset services for Apac at FIS Global, joins the podcast to talk about how firms in Asia-Pacific approach AI and data.
Project Condor: Inside the data exercise expanding Man Group’s universe
Voice of the CTO: The investment management firm is strategically restructuring its data and trading architecture.
BNP Paribas explores GenAI for securities services business
The bank recently released a new web app for its client portal to modernize its tech stack.
Bank of America and AI, exchanges feud with researchers, a potential EU tax on US tech, and more
The Waters Cooler: Broadridge settles repos in real time, Market Structure Partners strikes back at European exchanges, and a scandal unfolds in Boston in this week’s news roundup.
Bloomberg rolls out GenAI-powered Document Insights
The data giant’s newest generative AI tool allows analysts to query documents using a natural-language interface.
Tape bids, algorithmic trading, tariffs fallout and more
The Waters Cooler: Bloomberg integrates events data, SimCorp and TSImagine help out asset managers, and Big xyt makes good on its consolidated tape bid in this week’s news roundup.
DeepSeek success spurs banks to consider do-it-yourself AI
Chinese LLM resets price tag for in-house systems—and could also nudge banks towards open-source models.
Standard Chartered goes from spectator to player in digital asset game
The bank’s digital assets custody offering is underpinned by an open API and modular infrastructure, allowing it to potentially add a secondary back-end system provider.