Misato is addressing financial institutions’ enterprise data management (EDM) challenges with a disruptive approach based on open source high-performance data bus technologies. The company’s Data Hub moves away from traditional data warehouse and extract, transform and load (ETL) solutions to focus on how data is consumed by applications. Working backwards, the hub can then reduce the translations and physical movements of data required to feed applications.
In a paper covering the challenges and opportunities of EDM, the company describes use cases for Data Hub across regulatory compliance, and presents a case study covering the challenges faced by a $300 billion Tier 1 global asset manager with offices in New York and London, and a requirement to produce quarterly regulatory filings across both jurisdictions in line with the US SEC Form PF and the EU’s Alternative Investment Fund Management Directive (AIFMD).
In the EU, the European Securities Markets Association (ESMA) requires held securities to be classified five different ways into one of hundreds of categories. In the US, the SEC has a different set of classification schemas. As a result, the asset manager found the same position in the same fund may or may not be reportable in both jurisdictions.
To calculate assets under management and regulatory assets under management, the firm was running three order management systems across two offices, with three portfolio management systems. Additionally, the asset manager had a complicated history of acquisitions that had left a large legacy IT footprint. The firm’s regulatory team was operating two different reporting systems in both offices to produce each filing and wanted to consolidate on a single reporting platform, but the scale of data required to produce both filings was beyond the capacity and capability of the firm’s in-house built data warehouse. Also in the mix were two third-party administrators sending spreadsheet reports containing information that required expert interpretation.
To challenge these problems and improve efficiency, Misato Data Hub was implemented at the entry point of the asset manager’s reporting system and expert know-how was embedded in its rules engine. The hub gathers, cleanses and delivers required data to the new reporting solution, reducing friction in operations. The hub also delivers superior agility, with changes to data sourcing and semantics handled by Misato and changes to filings handled by the reporting system.