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

A-Team Insight Blogs

Third Party Consensus Data is Not Dead But it’s Dwindling, Says Citi’s Booth

The buy side is busy creating its own resources for consensus data and this has meant that third party provision of this data is slowly declining in importance, said Paul Booth, co-head of the global data services team at Citi Investment Research. The decision to source this information directly is being taken by many of the larger firms because they have the scale to make the investment.

There are many issues with third party sources of this data, including time lags, inconsistency and important metrics being overlooked, he told delegates to FIMA 2008. “The problems inherent in third party consensus data also include an inconsistent approach in how the numbers are calculated,” he added. International Financial Reporting Standards (IFRS) are also not helping matters, and often ultimately results in more of a time lag between the reports being produced and vendor updates, as vendors check that the data is correct.

“There is no incentive for the broking community to get involved in making sure third party data sources are correct due to the lack of an ownership concept,” said Booth. The commoditisation of content means that the data is being diluted from these sources, he added.

In order to tackle some of these problems, there needs to be deeper engagement of the broker community with the vendors, he suggested.

“Third party consensus data will not die out but it will become less relevant over time,” Booth concluded.

Related content

WEBINAR

Recorded Webinar: Balancing Regulatory Transparency with Data Protection

You can listen to the recording of this webinar by registering on this page. Balancing the use of personal data required by Markets in Financial Instruments Directive II (MiFID) as part of its transparency regime with the personal data protection rules set out in General Data Protection Regulation (GDPR) is a tough task – tell...

BLOG

IHS Markit Adds Data Dictionary for EDM Platform

IHS Markit has released a data dictionary designed to help business users gain greater visibility of their data. The Data Dictionary has a web-based interface that allows users to see what data is available within their organisation, and a portal that includes data governance metadata covering how the data is defined, where it has come...

EVENT

Data Management Summit USA Virtual (Redirected)

Now in its 11th year, the Data Management Summit USA Virtual explores the shift to the new world where data is redefining the operating model and firms are seeking to unlock value via data transformation projects for enterprise gain and competitive edge.

GUIDE

Practical Applications of the Global LEI – Client On-Boarding and Beyond

The time for talking is over. The time for action is now. A bit melodramatic, perhaps, but given last month’s official launch of the global legal entity identifier (LEI) standard, practitioners are rolling up their sleeves and getting on with figuring out how to incorporate the new identifier into their customer and entity data infrastructures....