Financial technology management solutions company CJC’s new IT Regulatory Services division is offering auditing and inventory of firms’ outbound data, concentrating on publication of market data rather than consumption, as a way to improve efficiency and reduce costs, according to Sheena Clark, director of regulatory services, CJC.
“This is predominantly a data governance and risk mitigation exercise, demanded by regulation,” she says. “The aim is to identify what data is being contributed globally, and who is in control of the permissioning. This service will highlight any shortcomings in data governance, pricing transparency and regulatory alignment.”
While most institutions have robust market data management for inbound data coming from third parties, they typically lack staff who can be responsible for governance and permissioning of outbound data, according to Clark.
CJC IT Regulatory Services’ outbound data auditing and inventory methodology is in place, and its audits take 10 to 12 weeks, depending on the firm’s size and data volumes, which is typical.
“The banks may have hundreds of desks contributing to all or some vendors. There’s an overarching bank brand and the actual trading desks are their own businesses when it comes to putting their prices into the market,” says Clark. “Making this data publication part of market data and bringing transparency to each bank about what their activity is has the potential to make the market more efficient.”
In addition, CJC expects high demand for the auditing service once FRTB and MiFID II are better and fully understood, according to Clark. “It integrates with the range of regulatory services being launched by CJC,” she says. In keeping with strategic change CJC has made with the new division, the company plans to introduce more regulatory services in the coming months.