The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Data Rationale Needed as Exotic Instruments Mature, JPM’s Serentia Tells FIMA 2008

Not all data should be centralised and there has to be a rationale for the data that you do centralise, said Peter Serenita, chief data officer of JPMorgan Worldwide Securities Services in a FIMA panel about ‘Ensuring a successful group-wide data management model’.

“Exotic instruments are not commoditisable, but you need to have a data model in place in order to handle them as they mature,” said Serenita. He pointed out that 15 years ago interest rate swaps were considered complex and now they are more run of the mill compared to the more exotic instruments being created.

Liam Davis, vice president of global data management strategy at Northern Trust, said, “We’re in a servicing business. But with the enterprise-wide data model we’re trying to get all information into a very narrow pipe.” He said Northern Trust is working with a local franchise model to address the needs of various clients in acknowledgement that one size does not fit all.

The panel agreed that trying to impose too many standards on instruments can have the negative impact of restricting innovation.

On the topic of outsourcing of data management from the securities services side, Liam said, “The goal of outsourcing is not typically to outsource data management, but to outsource areas such as fund servicing or operations and outsourcing data management is a consequence of that.

“We have felt the pain of outsourcing when the front office no long has any control over the data. But you have to overcome this with compromise and control. They come to the table with specific requirements now, which is a challenge as you end up in an environment with more than one boss.”

While outsourcing is usually a ‘cost reduction’ play, according to Serenita, it was pointed out that some firms have ended up paying more to manage their outsourcing than they were spending internally.

Related content

WEBINAR

Recorded Webinar: Leveraging innovation in data management

Financial Institutions are going through considerable change as they look to deploy innovative technologies and solutions that could radically change data management processes and deliver operational and business benefits. This webinar will review innovation in data management – including technologies such as machine learning, pattern matching, artificial intelligence and solutions such as utilities and managed...

BLOG

A-Team Group Names Winners of Data Management Insight Awards 2020

A-Team Group has announced the winners of its prestigious Data Management Insight Awards 2020. The annual awards, now in their eighth year, recognise leading providers of data management solutions, services and consultancy to capital markets participants. The award winners were announced online across categories ranging from best sell-side and buy-side data management platforms to best...

EVENT

Data Management Summit Virtual

The Data Management Summit Virtual brings together the global data management community to share lessons learned, best practice guidance and latest innovations to emerge from the recent crisis. Hear from leading data practitioners and innovators from the UK, US and Europe who will share insights into how they are pushing the boundaries with data to deliver value with flexible but resilient data driven strategies.

GUIDE

Enterprise Data Management, 2009 Edition

This year has truly been a year of change for the data management community. Regulators and industry participants alike have been keenly focused on the importance of data with regards to compliance and risk management considerations. The UK Financial Services Authority’s fining of Barclays for transaction reporting failures as a result of inconsistent underlying reference...