Pinpointing Attributes
Accuracy and timeliness are in increasing demand for both identifiers and pricing
Accuracy and timeliness of identifiers and pricing figure prominently in the data management issues covered in the December issue of Inside Reference Data.
In "The Big Picture Of Solvency II," we recount how panelists in our webcast on the topic last month examined how legal entity identifiers (LEIs) are especially relevant for compliance with the European capital adequacy regulation. UBS's Mohammad Ahmad explained how two different types of bonds can be classified the same without LEIs. Thomson Reuters' Tim Lind goes so far as to advocate making LEI registration a condition for equity and debt offerings.
In "Evolving Identification," our "Interview With" feature, Jefferson Braswell lays out a status report on the LEI itself. Braswell has played a big role in planning and organizing the administrative infrastructure for LEI registration and operations, in different capacities—with the Tahoe Blue consultancy which co-founded p-lei.org, an LEI distribution project that is the forerunner to Braswell's other affiliation, the Global Legal Entity Identifier Foundation (GLEIF), of which he is a board member.
In the interview, Braswell emphasizes that tremendous progress has been made on the LEI, with the designation of 15 or more local operating units over the past 18 months. Since the common file format for the LEI was established in June and GLEIF began collecting fees to fund LEI administration in July, the foundation had the basis to actively oversee local operating units (LOUs) and become the source for LEI data under the new format. As Braswell explains, pre-LOUs no longer have to publish LEIs in the old legacy format of p-lei.org, and that organization will start handing over responsibility to GLEIF.
Reaching this tipping point in LEI administration should not be the end of concerns, however, Braswell told Inside Reference Data. He also advocated for enforcement of LEI updates from year to year, and harmonization of foreign character sets that can be present in LEIs in some countries with English language- or Latin character-based customer rosters that are universally used.
Lastly, in pricing and valuations, a different accounting method called "prudent valuation," promoted by the European Banking Authority, is surfacing as an alternative to the fair-value pricing method—applicable for the European arms of any financial firm that is global in scope, as reported in "Evaluated, Scrunitized," Joanna Wright's look at Asia-Pacific end-user client concerns about evaluated pricing. The intent around prudent valuation is to get greater certainty in valuations. And regarding timeliness, clients are now demanding evaluated pricing updates as often as every 30 minutes.
That demand has been fueled by regulation, particularly Basel III capital adequacy requirements, as Interactive Data's Magnus Cattan tells us. The increased intensity concerning timeliness is also manifesting in a need for more insight into pricing methods.
Overall, a combination of regulation and standards initiatives, as well as financial firms' efforts to get more accuracy, faster, is driving changes in data collection and administration, as we track in these stories this month.
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.
Most read
- Zeros and ones: Industry contemplates T+0 as the next step
- Natixis refines in-house interoperability model
- IEX Cloud closure forces fintech clients to seek data alternatives