A-Team Insight Blogs

Data Management – Why is it all so Difficult and Costly?

Share article

The financial industry spends $28.5 billion on externally sourced market data and a further $2-3 billion cleaning it up so that is can be used internally. Why is this so difficult and costly, and what can the industry and market participants do about it?

Peter Moss, CEO of the SmartStream Reference Data Utility (RDU), will discuss the problems of market data and some potential solutions during a keynote presentation at A-Team Group’s Data Management Summit in New York City next week on Thursday 19 September.

Moss suggests that in a market where products are defined by data and traded using data mechanisms, the data should be standardised – but this is not the case due to factors such as differences in securities identifiers, a lack of identifiers in some capital markets, data attributes represented differently across data sources, problems with classification, and different identifiers for market participants.

On top of these problems, Moss notes the fluidity of capital markets, in which products are created and dropped on a continuous basis, and the impact on equity data of a constant stream of corporate actions.

He says: “It is very difficult to maintain all the data that is required in a straightforward way across an organisation. The truth is that data standards are not precise enough in an environment where data comes from a huge number of sources. Data vendors pull some of the data together, but it is not possible for a firm to get all required data from one source, which becomes a challenge for the firm.”

As well as considering these challenges during his keynote, Moss will discuss industry initiatives and firms’ efforts to improve matters, and the potential of utilities to short circuit some of the problems and provide firms with cleansed data.

Leave a comment

Your email address will not be published. Required fields are marked *

*

Related content

WEBINAR

Upcoming Webinar: Data lineage – how to ensure you can deliver the right information, to the right people, at the right time

Date: 10 October 2019 Time: 10:00am ET / 3:00pm London / 4:00pm CET. Data lineage is critical to digital transformation, business decisions and regulatory compliance. It is also difficult to implement at scale, not only because large quantities of data across numerous systems must be inventoried and tracked, but also because the data is not...

BLOG

FSB Names Derivatives Service Bureau as Sole Provider of the Unique Product Identifier

The Financial Stability Board (FSB) has designated the Derivatives Service Bureau (DSB) as the sole service provider for the future Unique Product Identifier (UPI) system. The DSB will also be the operator of the UPI reference data library and will start to issue UPIs once their code and reference data are set as international data...

EVENT

Data Management Summit New York City

Now in its 8th year, the Data Management Summit (DMS) in NYC 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

Entity Data Management Handbook – Fifth Edition

Welcome to the fifth edition of A-Team Group’s Entity Data Management Handbook, sponsored for the fourth year running by entity data specialist Bureau van Dijk, a Moody’s Analytics Company. The past year has seen a crackdown on corporate responsibility for financial crime – with financial firms facing draconian fines for non-compliance and the very real...