Golden Copy: Compatibility and Collaboration Become Ever-Present
Working with data, whether for compliance, following standards or performing analysis, relies on a common approach
Looking at the feature stories brought to you by Inside Reference Data this month, it's astounding how some of the same operations functions and concerns touch so many different compliance, standards and data analysis initiatives.
Efforts to make standards compatible, as reported in "Managing Multiplicity," must begin with identifying business practices that are different, as Scotiabank's Sydney Hassal tells us. Firms must also, of course, contend with jurisdictional differences in standards, notes Allie Harris of Bank of Montreal. A key purpose of reconciling all these differences is to be able to manage risk data and, in turn, competently manage risk itself, as Thomson Reuters' Tim Lind points out in this story.
After this report laying out some of the challenges for achieving compatibility of standards, our "Interview With" article offers examples of how to achieve necessary collaboration. Cornelius Crowley of the Office of Financial Research, a US government entity concerned with financial industry standards, urges companies to drill down to "microdata"—granular, targeted and specific information on entities, instruments, transactions or products. Breaking down standards efforts to the level of individual data elements can increase accuracy, Crowley advises.
The same principles of collaboration or sharing, and adhering to a standard, albeit in the form of a data governance plan, can apply to support for data analytics, as reported in "The Right Frame for Analyzing Data." Both data governance and data analytics can be improved upon by building mechanisms to share data, in the view of Leif Hanlen, a business development executive at Data61, a data requirements organization that is part of CSIRO, a digital development agency backed by the federal and state governments of Australia. Yet, however advanced a data sharing system is, the rules that data vendors and exchanges have about their data make it challenging to join such disparate sets together, observes John Denheen of Tyler Capital in London. "One of the big issues with getting good reference data is that you need to be able to tack it on to other data sets," he says.
One service provider, the enterprise data management (EDM) company Xenomorph, is conscious of the proprietary nature of data and its impact on sharing and collaboration, as its CEO, Brian Sentance, relates in this month's Industry Warehouse. A "secure, auditable EDM system" can mitigate the risks of bad data from running analytics without consistent standards and with different complexities from different sources of data, says Sentance.
EDM, if defined and used correctly, could be another valid frame for analytics, just like data governance plans. The common challenges of compatibility and standards found in the different endeavors covered in these stories are increasingly being recognized, although no one is claiming to have definitive solutions, just some insights and advice on how to cope.
Looking further afield, at a model approach to regulatory compliance technology being taken in Singapore called the "regulatory sandbox," which is covered in "Speeding Fintech's Evolution in Asia," you may agree that allowing attempts at new data operations solutions without requiring providers to gamble on a boom-or-bust outcome could be a more reasonable philosophy and framework for collaborative data efforts that make use of compatible standards.
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 Data Management
US banks seek to open vendors’ black box on green data
Inaugural Fed climate scenario analysis flags lack of transparency around third-party models.
IEX Cloud closure forces fintech clients to seek data alternatives
IEX says it is ditching its unprofitable data arm to focus on its core exchange business, but other vendors believe they can turn a profit from its former client base of fintechs, retail investors and some institutions.
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.
Waters Wrap: What’s going on ‘Here’? Examining interop’s next move
OpenFin is now known as Here. Anthony explains what the rebrand might signal for the application interoperability space.
This Week: MSCI, Tradeweb, FactSet, LTX, MarketAxess, TS Imagine, and more
A summary of the latest financial technology news.
Regulators urged to promote cyber security investment
Public interest in stopping cyber attacks that could trigger bank runs, says Bundesbank researcher
Most read
- IEX Cloud closure forces fintech clients to seek data alternatives
- Zeros and ones: Industry contemplates T+0 as the next step
- Natixis refines in-house interoperability model