Central Gestation
Data centralization advocacy gains ground, but effects not realized
![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)
The importance of coordinating and centralizing data, high on the agenda for the industry's ongoing conversation with itself, as recently covered here, also rose to the fore in the conversations at our North American Financial Information Summit (NAFIS) in New York earlier this week.
Citi and JPMorgan, among other firms, have data centralization in place or underway - or are trying to improve upon centralization of data they already have in place - particularly for legal entity identifiers (LEIs).
"We make sure we make [LEI data] available globally, so we're really focused on compliance and controls around it," said Ari Marcus, head of entity data operations and institutional client and account technology at Citi, speaking at NAFIS.
JPMorgan set up a central location for LEIs, especially to link these identifiers to client data and issuer data, according to Robin Doyle, managing director, office of regulatory affairs at JPMorgan Chase, also speaking at NAFIS. "We source centrally so we can provide the LEIs to all the various areas of our organization, to have the reporting or do reporting on behalf of our clients," she said.
Data management as a whole is really "about managing the content," said John Bottega, a senior advisor and consultant to the EDM Council and principal at Data Management Advisory Services, while moderating a NAFIS panel on reference data's role in regulatory compliance. "Data management is also about unambiguous shared meaning across our operations so we fully understand the essence of the data and then allow technology to be the all-important enabler." The industry, Bottega added, is "pretty good" at capturing, processing and moving data, but not as good at understanding the meaning of data.
To assemble more meaningful data, more movement of data between silos within firms is necessary, says Ed Ventura, president of Ventura Management Associates. "Companies that take the time to cross-pollinate those silos can leverage some of the work that they're doing on the compliance side with some of the business needs," he says. "Part of data governance is getting people to talk to one another - making sure that operations and technology are in tune with marketing, sales and the rest of the business."
Eliminating silos, or at least opening them up to compare the data they hold, can prevent, as Citi's Marcus described, "having different siloed organizations mapping LEIs to local IDs and then using that for different regional purposes."
The LEI is only one area to centralize, of course, and the aforementioned silos can occur with, or hinder collection of, any kind of data. It will be interesting to watch whether the new focus on centralizing data will improve business functions and regulatory compliance capability in the industry.
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
Facing platform shutdown, former IEX Cloud head buys its assets in 11th-hour bid
Tim Baker, Pedro Aguayo, and a silent partner have come together to purchase IEX Cloud’s assets days before the exchange was to retire all its products on August 31.
New working group to create open framework for managing rising market data costs
Substantive Research is putting together a working group of market data-consuming firms with the aim of crafting quantitative metrics for market data cost avoidance.
Off-channel messaging (and regulators) still a massive headache for banks
Waters Wrap: Anthony wonders why US regulators are waging a war using fines, while European regulators have chosen a less draconian path.
Back to basics: Data management woes continue for the buy side
Data management platform Fencore helps investment managers resolve symptoms of not having a central data layer.
‘Feature, not a bug’: Bloomberg makes the case for Figi
Bloomberg created the Figi identifier, but ceded all its rights to the Object Management Group 10 years ago. Here, Bloomberg’s Richard Robinson and Steve Meizanis write to dispel what they believe to be misconceptions about Figi and the FDTA.
SS&C builds data mesh to unite acquired platforms
The vendor is using GenAI and APIs as part of the ongoing project.
Aussie asset managers struggle to meet ‘bank-like’ collateral, margin obligations
New margin and collateral requirements imposed by UMR and its regulator, Apra, are forcing buy-side firms to find tools to help.
Where have all the exchange platform providers gone?
The IMD Wrap: Running an exchange is a profitable business. The margins on market data sales alone can be staggering. And since every exchange needs a reliable and efficient exchange technology stack, Max asks why more vendors aren’t diving into this space.