Opportunities (Let's Get Lots of Data)
Regulations are opening up opportunities for firms' data operations departments
![michael-shashoua-waters michael-shashoua-waters](/sites/default/files/styles/landscape_750_463/public/import/IMG/317/167317/michael-shashoua-waters.JPG.webp?h=acfe3244&itok=ceJMABf4)
Regulations such as the US Dodd-Frank Act, Volcker Rule, CCAR stress tests and Enhanced Prudential Supervision standards set restrictions financial services firms say dampen their ability to increase value for investors. But these rules are creating opportunities for firms' data operations departments, according to participants in the Virtual Roundtable in this report.
"The focus on data integrity has put data operations on notice," says GFT's Alan Morley. The regulations demand greater data oversight. Therefore, firms and their providers have to develop information sources, vouch for data integrity and build structures to report data to authorities.
Raising the quality of data is also necessary for compliance with all these regulations, says Dilip Krishna of Deloitte. This has the ancillary benefit, often talked about, of improving the cost profile for firms' data operations, he adds. And cost and efficiency are important, as Morley's colleague at GFT, Michael Engelman, says in the Roundtable. So, even for the business side, regulatory compliance can support business strategy goals, as SIX Financial Information's Jacob Gertel says.
Regulation is not only producing these effects and spurring this activity, it's also raising the urgency of taking these actions to find and manage more data, as State Street's David Blaszkowsky says in our Q&A, while Alain Robert-Dautun of Sycomore Asset Management — the Paris firm with nearly €3 billion in assets — recalls in the Roundtable that just responding to audit requirements back in 2008 led the firm to build data capabilities that have bolstered its data quality and analytics. Regulatory compliance truly is producing opportunities to get more data and raising the bar for all data obtained.
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.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
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. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Bloomberg, industry bodies push back on Cboe’s proposed OEMS rule change
Some industry bodies disagree with the options exchange’s proposal to carve its Silexx OEMS out of the SEC’s definition of an exchange facility and place it into a separate business line.
Zeros and ones: Industry contemplates T+0 as the next step
With the North American transition to T+1 settlement complete, same-day settlement could be the next goalpost set, though skeptics are many.
The IMD Wrap: Déjà vu as exchange data industry weighs its options
Max highlights some of WatersTechnology’s recent reporting on data costs and capacity issues facing the options industry, and asks, haven’t we seen this before somewhere?
FRTB data quality issues persist amid shifting implementation dates
Banks are finding market and reference data challenges posed by the FRTB’s standardized model tricky, compounded by uncertainty over when the regulation will take effect.
Cboe pushes rule change to make way for proprietary Opra alternatives
As US options data has grown in volume and cost, Cboe says changing the public feed's governing document would make way for more competition from private alternatives, including its Cboe One Options Feed, launched in 2023.
Regulators urged to promote cyber security investment
Public interest in stopping cyber attacks that could trigger bank runs, says Bundesbank researcher
Hong Kong looks for digital response to trade reporting burden
New swaps reporting framework will include more fields than requirements in US or Singapore.
Big questions remain over Dora’s critical third parties
Industry looks for clarity on critical third parties ahead of July 17 regulatory technical standards for the EU’s Digital Operational Resilience Act.