ValueLink has integrated its Automated Data Extraction Processing Tool (Adept), which automates the processing and validation of OTC counterparty data and fund data, into its PriceValidation and CounterpartyCollection services. According to the vendor, Adept automates the whole process from receipt of data to data upload, including exception notification.
Adept was developed as a solution to the myriad of data sets that are required in the market data arena but are only provided as an embedded document attached to an email or from a website, says ValueLink. It provides data source definition, schedule definition (notification of whether the data has been collected or received), identification and definition of the data sets required, data validation configuration, exception handling notification and, finally, data upload to ValueLink database.
It is aimed at reducing operational and reputational risk, increasing process efficiency, eliminating manual processing and providing scalability. This final implementation of Adept is the conclusion of over two years of development of services predominantly targeted towards satisfying clients’ counterparty collection requirements.
Trevor Beach, operations director at ValueLink, explains: “The release of Adept is the culmination of ValueLink’s determination to automate the collection and processing of counterparty data. This automation enables us to provide our clients with a cost effective solution to control their operational risk.”
He claims it is a crucial step forward in a function where many market participants rely on data manually collected, either in house or from a data vendor, and often in areas where cheap data input is recognised but there is little industry knowledge. “The alternative is the manual data collection and input by relatively expensive fund accounting teams,” he says. “These practices lack scalability, give little confidence for data accuracy and represent serious operational risk. Our solution removes the manual involvement, is fully scalable and controls the operational risk.”
Sitting on top of Adept are the standard ValueLink service elements of data validation, dedicated client administration and an array of reporting functions, says the vendor. The data validation can be tailored to meet individual client demands and the dedicated administration includes chasing counterparties for any delayed, erroneous or missing data.
Beach reckons the reporting element has proven particularly useful in satisfying the complex requirements for the administration of illiquid OTC derivative data. This detailed reporting supplements the demand for greater transparency and independence, he claims.