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

A-Team Insight Blogs

SGSS’s Rose Elaborates on Challenge of Determining Fair Valuations

Subscribe to our newsletter

Société Générale Securities Services (SGSS) currently uses 13 data feed providers in order to price an average of 17,000 bonds on a daily basis, according to Olivier Rose, head of international projects data management for the firm. Although 80% of these valuations pose no problems for the securities services provider, 20% fall under the auspices of fair value and are therefore a significantly more challenging proposition.

The firm is currently reviewing its fair value strategy in light of the changes going on within the accounting space at a global and European level, says Rose. The main part of this work is reviewing the providers of evaluated prices on the market, of which there are many, and determining the differences between these vendors. “It is a very expensive process to search for the most relevant prices across the market,” notes Rose.

The biggest push within the market in the valuations space seems to be for more data around prices, especially those that fall under the fair value category, and SGSS is no exception. Rose indicates that an audit trail for historical prices is also important, as well as current prices, thus adding yet more strain on firms’ data management capabilities. “You may need to have access to pricing data about instruments that were traded a long time ago in order to meet both regulatory and client requirements,” he says.

This also means that both the front office and the back office both need to be on the same page with regards to pricing practices and data sharing. However, these teams are using the data for very different ends and there is a tension between the two spaces, notes Rose. The use of a central core neutral platform that can be used across the institution is therefore likely to be even more important going forward.

SGSS is certainly keen to be engaged in the debate about how best to approach data management as a whole, including valuations data. At FIMA last year, Rose also spoke about SGSS’s other endeavours to centralise its eight separate siloed data systems into one core central database across the business. He noted that the firm is currently far away from realising this goal but was hopeful that C-level buy in as a result of new risk management and compliance requirements would materialise this year.

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Taking a holistic approach to buy-side data management

Date: 7 February 2023 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes As data volumes and complexity continue to increase, buy-side data management is at an inflection point. Manual processes and data siloes are no longer fit for purpose, and firms need to take a more holistic approach to data management...

BLOG

Data Management Summit New York will Discuss How Cloud Can Unleash the Value of Data

Cloud-based data management is winning converts with its ability to free financial institutions from often rigid and siloed architectures that can stunt innovation and erode the value of digital transformation. It also reduces dependency on on-premise and data warehouse-based architectures, giving firms the scale and power to make their data work harder and deliver greater...

EVENT

ESG Data & Tech Summit London

The ESG Data & Tech Summit will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

Regulatory Data Handbook 2022/2023 – Tenth Edition

Welcome to the tenth edition of A-Team Group’s Regulatory Data Handbook, a publication that has tracked new regulations, amendments, implementation and data management requirements as regulatory change has impacted global capital markets participants over the past 10 years. This edition of the handbook includes new regulations and highlights some of the major regulatory interventions challenging...