CDO Advocacy and Influence

The rise of chief data officers, which posed organizational challenges for financial services firms when it began to get attention last year, is gaining traction and respect, as evidenced in stories in this issue.
Chief operating officers are expected to work with chief data officers on operational changes, according to survey research conducted by Broadridge Financial Solutions and the Economist Intelligence Unit. CDOs can contribute to COOs' changes to operations in response to compliance and governance concerns by aggregating risk data for the necessary risk models, Broadridge's Timothy McConnell says.
CDOs themselves spoke about their approach to data management and governance at last month's European Financial Information Summit, advocating centralization in these functions as the best way to obtain effective oversight of reference data. Reducing data complexity while ensuring its accuracy, if not squarely in CDOs' domain, as Pioneer Investments CDO Edward Boag says, at least ought to go to data architects or big data experts, according to BNP Paribas' Vincent Benita.
Centralization improves data quality no matter who drives it, the CDOs say. Aside from that, CDOs can reach into business development, Benita says, through their work in client information and business intelligence. A year ago, we did not hear about CDOs driving such initiatives, and they were not yet trying to lead by advocating the value of data.
On another front, while industry professionals are still saying that the implementation of the legal entity identifier (LEI) needs a regulatory push to get closer to completion -- as they had said in a feature in our June issue -- or at least to the possible critical mass of one million identifiers being registered, national numbering agencies' (NNAs) involvement and the potential to improve data quality are helping the LEI gain acceptance.
Many NNAs are also choosing to serve as local operating units (LOUs), the direct "boots on the ground" administrators of the LEI in each country. In the US, an NNA such as CUSIP Global Services plays a big role in getting more LEIs completed by making it possible to request the identifier along with an application for a CUSIP number or ISIN code. The London Stock Exchange, which acts as a NNA and LOU, adapts to what numbering agencies capture rather than just capturing the events, its SEDOL masterfile head Emma Kalliomaki says.
Finally, this story also includes a look at how the LEI can improve data quality by consolidating and coordinating data, and by distinguishing between similar entities. If CDOs are looking to improve data quality through centralization, certainly leveraging the LEI should be part of their efforts.
Nonetheless, this issue may have captured the moment when CDOs have hit the tipping point in gaining influence or, more pointedly, getting to put their ideas and approaches into practice. The next 12 months could see a lot more of this.
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 Data Management
In data expansion plans, TMX Datalinx eyes AI for private data
After buying Wall Street Horizon in 2022, the Canadian exchange group’s data arm is looking to apply a similar playbook to other niche data areas, starting with private assets.
Saugata Saha pilots S&P’s way through data interoperability, AI
Saha, who was named president of S&P Global Market Intelligence last year, details how the company is looking at enterprise data and the success of its early investments in AI.
Data partnerships, outsourced trading, developer wins, Studio Ghibli, and more
The Waters Cooler: CME and Google Cloud reach second base, Visible Alpha settles in at S&P, and another overnight trading venue is approved in this week’s news round-up.
A new data analytics studio born from a large asset manager hits the market
Amundi Asset Management’s tech arm is commercializing a tool that has 500 users at the buy-side firm.
One year on, S&P makes Visible Alpha more visible
The data giant says its acquisition of Visible Alpha last May is enabling it to bring the smaller vendor’s data to a range of new audiences.
Accelerated clearing and settlement, private markets, the future of LSEG’s AIM market, and more
The Waters Cooler: Fitch touts AWS AI for developer productivity, Nasdaq expands tech deal with South American exchanges, National Australia Bank enlists TransFicc, and more in this week’s news roundup.
‘Barcodes’ for market data and how they’ll revolutionize contract compliance
The IMD Wrap: Several recent initiatives could ease arduous data audit and reporting processes. But they need buy-in from all parties if all parties are to benefit.
‘The opaque juggernaut’: Private credit’s data deficiencies become clear
Investor demand to take advantage of the growing private credit markets is rising, despite limited data, trading mechanisms, and a lack of liquidity.