A new industry briefing and survey report from A-Team Group and GoldenSource
A-Team Group, a publishing and research company specialising in financial information technology, was commissioned by enterprise data management specialist GoldenSource to conduct research into the challenges of managing pricing and valuations data.
Throughout the course of October 2009, A-Team Group researchers interviewed senior-level specialists closely aligned to market data or valuations. Several spanned multiple responsibilities including oversight of client data, product information, and trading risk.
The interview sample was spread across asset managers (52%), Tier-1 and Tier-2 banks (32%), broker/dealers (11%) and custodians (5%).
Geographically, participants were dispersed across the United Kingdom (47%), Europe (21%), and the United States (32%). Over half of the respondents had global responsibility within their organizations.
Today speed is crucial to any trading venue that wants to stay competitive. At the same time, with high-frequency trading gaining an increasing share of overall volumes, the ability to manage rising transaction volumes is also a necessity.
The A-Team Group Liquidity Risk Management Directory is a new and first of its kind publication, focusing on the providers of solutions in the complex and demanding area of liquidity risk management. As financial institutions face extensive new requirements in the management of liquidity risk, the directory is intended to provide indispensable assistance in the assessment and selection of solution providers.
Market infrastructure is evolving at a pace that even the most technology-savvy financial institutions find challenging. New execution venues are popping up everywhere fragmenting liquidity and creating cross-dependencies between primary and derivative marketplaces. The move to fast markets and trading automation is cutting response times and increasing data volumes. Markets have shown a 70% increase in volume over the last year alone.
This year has truly been a year of change for the data management community. Regulators and industry participants alike have been keenly focused on the importance of data with regards to compliance and risk management considerations. The UK Financial Services Authority’s fining of Barclays for transaction reporting failures as a result of inconsistent underlying reference data is a case in point. Firms are now more aware than ever before of the dangers that are posed by failing to adequately manage this data: reputational and operational risk is at stake.
It may have been a long time coming, but it appears that machine-readable news’ time has come. With today’s emphasis on fast, automated and event-driven markets, the ability to tap events and apply them to computer-based models seems obvious. But until relatively recently, the idea of electronically capturing news–or text-based information–for use in automated processes has been the stuff of science fiction.
