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

A-Team Insight Blogs

OFR’s Blaszkowsky Challenges Industry to Make Data Fit for Purpose

David Blaszkowsky, senior policy advisor at the US Office of Financial Research (OFR), has challenged perceptions of data management in financial markets, saying data is not a conundrum but a business problem that can be tackled in a way that other industries have tackled problems using a rigorous and judicious approach.

Speaking at this week’s Regulatory Reform and the Data Conundrum Conference 2012, an event organised at the London Stock Exchange by the International Centre for Financial Regulation and Intellect, Blaszkowsky said: “Data management is not a conundrum. We must use data that is needed for regulation, supervision and by the industry for its own data management rationally.”

In his presentation, ‘Data, Data Standards and Financial Stability Research’, Blaszkowsky outlined the work of the OFR, which was established by the 2010 Dodd-Frank Act to support the US Financial Stability Oversight Council. The agenda is to research threats to financial stability, evaluate mitigants, address data gaps and promote data standards.

Blaszkowsky described the state of research into financial stability as “a theory without facts”, saying firm data has not kept up with needs of financial research that is required to support policy makers. This situation, he said, needs to be improved and one way to do that is to fill data gaps across the industry.

While many in the industry agree that financial data is not fit for purpose, Blaszkowsky insisted that this problem should be pursued.

“Data is crucial to research and monitoring threats to financial stability. Financial data that is fit for purpose is achievable for regulators and participants in the financial sector. The requirement is not for all data, but the right data and this is what the OFR is working towards,” he said.

Considering data as part of a supply chain process, Blaszkowsky suggested data could be subject to quality improvement, that technology could be a data enabler and that data standards could save effort while improving the usefulness of data.

“We are trying to understand through research what it is necessary to know to avoid threats to financial stability,” Blaszkowsky said. “Two of our goals are to help the Financial Stability Oversight Council access better quality data and to promote data-related best practice. The OFR organisation includes a research centre and a data centre, they are equally important. We can solve problems, but only if problems around data are solved.”

On the issue of the legal entity identifier (LEI) that is being developed under the auspices of the Financial Stability Board (FSB) with a view to stemming systemic risk, Blaszkowsky said: “We have dedicated an information standards group to focus on the LEI. The LEI is a global initiative of great value to the US. There has been tremendous involvement of the financial industry in developing the LEI and the OFR is working with regulators and the industry to recommend to government that the LEI should be implemented through the processes of the FSB. The LEI can help close data gaps and make data easier to analyse.”

Related content

WEBINAR

Recorded Webinar: A new way of collaborating with data

Digital transformation in the financial services sector has raised many questions around data, including the cost and volume of reference data required by each financial institution. Firms want to pick and choose the reference data they need to fulfil their requirements. Emerging solutions with the potential to decrease the cost of data and increase flexibility...

BLOG

GLEIF Calls Global Industries to Join Development of Cryptographically Verifiable LEI

The Global Legal Entity Identifier Foundation (GLEIF) has set out grand plans to create a digitised LEI service based on a digitally verifiable credential containing the LEI – the vLEI – and able to provide automated identity verification between counterparties. The ambition is for all industry sectors globally, including financial services, to embed new and...

EVENT

TradingTech Summit Virtual

TradingTech Summit (TTS) Virtual will look at how trading technology operations can capitalise on recent disruption and leverage technology to find efficiencies in the new normal environment. The crisis has highlighted that the future is digital and cloud based, and the ability to innovate faster and at scale has become critical. As we move into recovery and ‘business as usual’, what changes and technology innovations should the industry adopt to simplify operations and to support speed, agility and flexibility in trading operations.

GUIDE

RegTech Suppliers Guide 2020/2021

Welcome to the second edition of A-Team Group’s RegTech Suppliers Guide, an essential aid for financial institutions sourcing innovative solutions to improve their regulatory response, and a showcase for encumbent and new RegTech vendors with offerings designed to match market demand. Available free of charge and based on an industry-wide survey, the guide provides a...