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

Despite Lack of Standards, Legal Entity Data Will Become Centre of Data Operations

Subscribe to our newsletter

Although standards for legal entity data are likely to evolve over time and become more rigorous, there does not exist today a standard directory of identifiers for legal entities across global jurisdictions, said James Redfern, head of sales and marketing at CounterpartyLink. But with an average of 27% of company records held at financial institutions deemed inaccurate, firms need to figure out how to fix these problems and then continue to maintain the database in the absence of any industry standard, particularly in current conditions, he suggested.

Redfern said, “The entity is the key element in the middle; it will become the centre of data operations.” Key to managing entity data is getting the linkages right, he said, referring to both the linking of entity data, which can quickly become complex, but also linking of disparate sources to gather that information, be that the registration authorities, regulators, exchanges, or other sources. Said Redfern, “But the linkages are rendered worthless if the data it is linked to is inaccurate or not fit for purpose.”

He promoted CounterpartyLink’s Client Data Audit Report as a useful independent auditing service that could be used within business cases for senior management. But the audit can also be very useful for helping to prioritise cleansing and maintenance work, for example prioritising the higher risk entities over those with lower risk or less exposure.

Through conducting such audits for clients, Redfern said that the most common areas for data impurities were: ownership (12%), company name (8%), registered address/headquarters (7%), regulator (6%), registration (5%), and identifiers (4%).

At least one senior member of the US Federal Reserve had highlighted entity data as a key ‘broken’ factor in risk assessment, perhaps indicating a likelihood of further examination of the issue and potential regulation down the line. But as Redfern pointed out, “It is beneficiary to have standards, but business will continue without them.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: In data we trust – How to ensure high quality data to power AI

Artificial intelligence is increasingly powering financial institutions’ processes and workflows, encompassing all parts of the enterprise from front-office to the back-office. As organisations seek to gain a competitive edge, they are trialling the technology in variety of ways to streamline and empower multiple use cases. Some are further than others along the path to achieving...

BLOG

Reporting Seen Among Use Cases Benefiting from Cloud-based Data Management for AI

Artificial intelligence is being adopted by financial regulators at pace, putting pressure on the financial institutions that the overseers serve to double down on their reporting capabilities. It’s no surprise to find that the same AI that’s helping regulators can aid organisations in getting those reporting procedures in place. To do so, however, they need...

EVENT

TradingTech Briefing New York

Our TradingTech Briefing in New York is aimed at senior-level decision makers in trading technology, electronic execution, trading architecture and offers a day packed with insight from practitioners and from innovative suppliers happy to share their experiences in dealing with the enterprise challenges facing our marketplace.

GUIDE

Connecting to Today’s Fast Markets

At the same time, the growth of high frequency and event-driven trading techniques is spurring demand for direct feed services sourced from exchanges and other trading venues, including alternative trading systems and multilateral trading facilities. Handling these high-speed data feeds its presenting market data managers and their infrastructure teams with a challenge: how to manage...