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

A-Team Insight Blogs

The ECB’s Reference Data Utility: Evidently a Controversial Topic…

The European Central Bank’s (ECB) proposed reference data utility seems to have caught the attention of a lot of Reference Data Review readers out there. While most are in support of standardisation in the reference data space in general, many are confused and, frankly, concerned about what the ECB is planning.

On reader in particular, who shall remain anonymous, had some particularly interesting thoughts on the matter: “Having heard Francis Gross speak at the Xtrakter conference earlier this year my understanding is that the ECB initiative is based on automobile industry best practice where quality is instilled at the earliest point possible. Hence the logic to create a new utility data creation source that ensures consistent standards for all securities. However, given the wide range of instruments and vendor value added fields ‘baked in’ to the business process, wouldn’t it perhaps be more feasible to use ECB’s clout to define and enforce industry standards for core data attributes that must be supported by all sources and vendors? In that way the industry could gravitate towards standards over time as part of existing change activity.”

This is certainly a point I will be raising with Gross, the director general of the ECB’s statistics division, at this year’s Sibos in Hong Kong, during which I will be chairing a panel on the subject (see here for more details). The same reader mentioned above has suggested a number of questions he would like me to pose to Gross during the panel and I’m keen for other readers out there to send me any questions they feel should be answered on the subject.

The reader questions so far (not including those I shall be posing) are as follows: Is it really feasible to add a data creation step for all instrument types globally without suffering any delays to end consumers? Will the ECB solution just cover core instrument attributes or will it manage the full range of front office analytics, classifications, issued share capital, ratings and issuers that the main vendors currently provide? How can we be sure that this proposal would not simply add yet another point of failure to the existing data industry behemoth? I would encourage you all to get writing in!

Related content

WEBINAR

Recorded Webinar: Managing the transaction reporting landscape post Brexit: MiFID II, SFTR, EMIR

The transaction reporting landscape has, for many financial institutions, expanded considerably in size since the end of the UK’s Brexit transition period on 31 December 2020 and the resulting need for double reporting of some transactions to both EU and UK authorities. It has also changed dramatically following the UK government’s failure to reach equivalence...

BLOG

How to Use Chatbots and Collaboration Tools to Improve Automation and Deliver On-Demand Data

Digital transformation in the financial services sector is forcing a rethink in how financial institutions access the data they need to support trading and investment activities. While traditional bulk data distribution arrangements are well suited to large sell-side institutions, they can be costly and lack flexibility for firms from large Tier 2 sell-sides down to the...

EVENT

Data Management Summit Virtual

The Data Management Summit Virtual brings together the global data management community to share lessons learned, best practice guidance and latest innovations to emerge from the recent crisis. 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

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...