About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Interactive Data Aims to Provide a More Holistic View of Ref Data via its Business Entity Service Update, Says Cumberbatch

Subscribe to our newsletter

Interactive Data’s new web-based portal for its Business Entity Service took several months of development and the aim was to provide users with access to a more holistic and centralised view of the reference data related to a particular issuing entity, asset class, region or industry, explains Bob Cumberbatch, European business lines director for the Reference Data business line at the vendor. One particular early adopter has been using the service for a number of months and has been able to benefit from the new ad hoc look-up service for instrument data from the vendor’s FTS securities administration tool, he tells Reference Data Review.

“The new web-based portal for the Business Entity Service, delivered via our FTS securities administration tool, is an extension to our existing global service,” explains Cumberbatch. “The portal took several months to develop. The challenge was to develop a flexible, innovative Java application to present fully navigable issuer hierarchies while maintaining cross-browser compatibility. I believe that our innovative development team has achieved this.”

The new portal has been designed with a view to providing a more complete picture of the corporate hierarchy of an entity and its underlying securities issuance in order to better understand its capital structure and enable end users to track risk exposures across pre- and post-trade business functions. Given the focus on this space in the post-Lehman world, the vendor’s upgrade also aims to provide users with a tool to help identify the potential risks that could be triggered by ‘stress’ events affecting related entities from within the family tree of the subject entity.

“The new portal represents an example of how we aim to evolve our FTS service – you could say the new ‘look and feel’,” says Cumberbatch.

The Business Entity Service itself is aimed at helping clients to meet their requirements for managing credit, market and operational risk, financial instruments’ collateral, as well as compliance under a variety of global risk management and liquidity risk regulations (see our interview with Cumberbatch on the subject of entity data and its impact on risk management earlier this year). The portal enables navigation of issuer hierarchies by instrument identifier, such as Sedol, ISIN and Cusip, entity full legal name, entity identifier, and interactive representations of issuing hierarchies and their underlying issuance.

Cumberbatch indicates that client demand inspired the move: “A number of clients asked if we could extend the scope of our instrument to issuer mapping to include all the instruments in our service in order to help provide a centralised, holistic view of reference data. The aim was to help ensure consistency of data and help support the in-house distribution frequencies required to manage pre- and post-trade risk.”

Having established comprehensive coverage of instruments via FTS in the download service, the vendor could then provide an ad hoc look-up service, in order to enhance the value of the service to its clients. As a result, end users are able to research the possible impact of taking a position and perform instrument set up ahead of a trade.

The vendor also ensured it was going down the right track in terms of development by involving a number of parties in the process. “To make sure that we’re helping to meet market requirements, we have been working with development partners across a number of business functions on this project since 2010,” explains Cumberbatch.

He notes that the feedback from the market has been positive thus far and one early adopter has been using the portal for its “mission critical business functions” for a number of months.

As for how the portal fits into the bigger picture for the vendor, Cumberbatch says: “We aim to evolve our services to help meet the developing market challenges and needs. This is an example of us working with a number of third party specialist counterparty data providers and clients in order to offer a Business Entity Service that combines its own broad range of instrument level reference data with specialist sourced entity level data.”

However, in terms of future developments, for now, the vendor is not giving anything away about its plans. We’ll just have to wait and see.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: The future of KYC and AML: How to tackle the challenges and gain the opportunities of perpetual KYC

Perpetual Know Your Customer (or pKYC) could be a game changer for client onboarding, due diligence and financial crime compliance. Moving on from today’s reactive approach that conducts client KYC processes at onboarding and typically at one, three and five year intervals, pKYC takes a proactive approach, creating a digital KYC profile and dynamically refreshing...

BLOG

Regulatory Oversight Committee of the LEI Revises Policy on Level 2 Data Reporting

The Regulatory Oversight Committee (ROC) of the Global LEI System (GLEIS) has revised two elements of policy covering the reporting of LEI parent relationship data, also known as Level 2 data. To improve the usability of Level 2 data, the ROC has revised the list of opt-out reasons that can be used by an entity...

EVENT

Virtual Data Management Summit London (Redirected)

Now in its 8th year, the Data Management Summit (DMS) in London explores the shift to the new world where data is redefining the operating model and firms are seeking to unlock value via data transformation projects for enterprise gain and competitive edge.

GUIDE

Corporate Actions Europe 2010

The European corporate actions market could be the stage of some pretty heavy duty discussions regarding standards going forward, particularly with regards to the adoption of both XBRL tagging and ISO 20022 messaging. The region’s issuer community, for one, is not going to be easy to convince of the benefits of XBRL tags, given the...