The Market Group announced on Tuesday the selection of Sapient Global Markets, part of Sapient, to design and build the European DataWarehouse (ED). In direct response to the European Central Bank’s (ECB) efforts to facilitate risk assessment and improve transparency standards for Asset Backed Securities (ABS), ED will be the first European central data repository owned and operated by the market for the market, and endorsed by the Eurosystem. Sapient Global Markets was chosen for its proven delivery capabilities and experience around risk management and valuation of securitized products.
Sapient Global Markets understands the complex business and technology requirements for processing ABS. With a depth of knowledge of today’s changing regulatory environment, and with the experience across the full lifecycle of ABS issuance and investing, Sapient Global Markets is uniquely qualified to ensure ED is a compelling solution for the ABS markets.
“After a competitive tender process, the Market Group selected Sapient Global Markets to construct the European DataWarehouse based on its ability to work with us across all facets of this project,” said Paul Burdell, secretary of The Market Group. “Sapient demonstrated previous experience providing transparency into structured finance instruments, and a clear understanding of the importance of this project to the market.”
The European DataWarehouse will allow ABS originators to submit loan-level data electronically in accordance with reporting templates developed by the ECB. Its goal is to increase transparency and enable investors to assess the value and risk of ABS. It will do this by providing a central data repository for ABS information, including that related to underlying financial assets. The European DataWarehouse will also provide functionality for the processing, verification and transmission of loan-level data between originators of and investors in securitized products.
“Sapient Global Markets firmly believes in the initiatives being undertaken to restore investor confidence in securitized products,” says Chip Register, head of Sapient Global Markets. “Our experience working with clients to support real-time valuation and analysis of structured finance instruments via our Structured Finance Risk Manager (SFRM) and our ability to deliver on time and on budget, make us an ideal constructor for ED. We are delighted to have been awarded such a prestigious mandate.”
Sapient Global Markets’ Structured Finance Risk Manager (SFRM) is a combination of services and software that automatically values, monitors and manages the risks associated with structured assets. It enables firms to achieve greater visibility into asset valuations and cash flows. Deployed and proven in environments with portfolio values in excess of $200 billion, SFRM automates the risk monitoring and analysis of asset and mortgage backed securities (ABS/MBS) and covered bonds.