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

A-Team Insight Blogs

S&P Finds Opportunity in Custom Linkages for Risk

Share article

Standard & Poor’s is investing significantly in the capability to support customised work with clients to meet risk and compliance requirements “at the point of intersection between risk and reference data”, according to Scott Preiss, vice president, securities classifications at the company. These customised offerings are provided in addition to the off-the-shelf products S&P has developed in this area, such as Security to Entity Crosswalk, created in partnership with Dun & Bradstreet and Telekurs Financial. S&P is also being called on to create linkages with credit ratings from the ratings side of its business, Preiss says.

“Recently we have spent more time on the business development and provision of the global aspect of cross-referencing tools, to provide mappings and linkages between a variety of coding structures – including back office identifiers like ISIN, Cusip and Sedol, and also legal entity identifiers such as proprietary DUNS for which we partner with D&B and increasingly a wide variety of proprietary coding systems,” he says. Each institution has its own internal identifier structures, and S&P says it is being called on more and more to maintain them, and to develop new linkages for clients. “This is not just about managing reference data; for supporting clearing and settlement and risk and compliance applications, the linkages we provide are increasingly important.”

The use of Security to Entity Crosswalk to support risk and compliance requirements is growing, Preiss says, because it links legal entities into the corporate hierarchy and drills down to the instrument level. “We are also making pretty significant investments in technology and new platforms to support customised work with clients around risk and compliance,” he adds. “Client requirements include needing all back office identifiers mapped to some front office or proprietary structures, and linked to core reference data and the corporate hierarchy.”
A “pleasant surprise” has been the appetite for linking in credit ratings from S&P’s ratings business, Preiss says. S&P is also working with “a handful of clients” who want other content sets linked in – from other ratings agencies, or other data sets altogether, including internal proprietary structures.

Related content

WEBINAR

Upcoming Webinar: Entity identification and client lifecycle management – How financial institutions can drive $4 billion in cost savings

Date: 21 January 2021 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes A new model in Legal Entity Identifier (LEI) issuance has created significant opportunities for financial institutions to capitalise on their KYC and AML due diligence. By becoming Validation Agents and obtaining LEIs on behalf of their clients, financial institutions...

BLOG

ANNA and GLEIF Expand ISIN-to-LEI Mapping Service

The Association of National Numbering Agencies (ANNA) has further expanded the ISIN-to-LEI mapping service it provides in conjunction with the Global Legal Entity Identifier Foundation (GLEIF) to cover ISINs in an additional group of jurisdictions. The mapping service developed collectively by the GLEIF, ANNA and its National Numbering Agencies (NNAs) was launched as a pilot...

EVENT

Data Management Summit Virtual

The Data Management Summit Virtual will bring together the global data management community to share lessons learned, best practice guidance and latest innovations to emerge from the recent crisis. Join us online to hear from leading data practitioners and innovators from the UK, US and Europe who will share insights into how they are pushing the boundaries with data to deliver value with flexible but resilient data driven strategies.

GUIDE

The Data Management Implications of Solvency II

This special report accompanies a webinar we held on the popular topic of The Data Management Implications of Solvency II, discussing the data implications for asset managers and their custodians and asset servicers. You can register here to get immediate access to the Special Report.