Aiming to support the increasingly sophisticated risk management requirements of buy side clients such as Schroder Investment Management, the FT Interactive Data business of Interactive Data Corporation (IDC) has extended its collaboration with IDC’s CMS BondEdge business to add new data items to its risk and analytical data service. Schroder is one of four existing European users of the service, first launched by FT Interactive Data as the risk and assumptive data service in February.
The risk and analytical data service combines FT Interactive Data’s provision of fixed income evaluations with the analytics of CMS BondEdge. Catherine Downhill, business manager – evaluated services at FT Interactive Data, says investment managers “are looking for historical and ongoing data to feed value at risk (VaR), performance and attribution type models. They are also seeking to use the analytical measures to help gain transparency on evaluated prices.”
Siobhan Doyle, COO for fixed income at Schroder Investment Management, says: “We were looking for a single source of pricing, risk and analytical data and FT Interactive Data’s risk and analytics module, combined with its bond evaluations service, provided this single source.”
Ian Blance, FT Interactive Data’s vice president, Capital Markets, says the enhancements to the service were undertaken in response to client demand. “The service launched at the beginning of this year really was a very basic service that made available some 13 or 14 data items for use with CMS BondEdge analytics,” he says. “As we rolled it out to clients we found there was an additional need for a much more complex and enhanced data set than the small number of data items we made available early in the year. Once we had identified the data items clients required, we went back to our colleagues at CMS BondEdge and worked out together how to calculate the data and deliver it to clients in a meaningful way.”
This is the first major collaboration between the data feed and analytics businesses of Interactive Data. Blance says there are further opportunities for the two businesses to create valued added services together “based on the amount of demand for complex analytical measures in data feed form that we see out in the market”.
The risk and analytical data service is available for download as a module via FTS, FT Interactive Data’s portfolio administration service. The new risk measures include key rate durations and option-adjusted spread durations. The existing daily service provides data such as option-adjusted spread, yield to maturity, option adjusted duration and convexity for FT Interactive Data’s bond evaluations.