In keeping with the recent onslaught of regulatory papers aimed at fostering a more risk aware financial services industry, the Basel Committee on Banking Supervision (BCBS) has published yet another consultative paper this week, this time focused on corporate governance. The paper includes 14 principles aimed at sparking investment by firms into their risk infrastructures and a more responsible attitude to risk management, a key part of which is having access to the right data at the right time.
After a difficult first quarter of fiscal 2010 (see our coverage 
The recently published examiner report into the Lehman bankruptcy indicates the scale of the data challenge faced when winding down a financial institution of its scale: the examiner was faced with three perabytes (otherwise known as 350 billion pages) of electronically stored data to process. Unsurprisingly, given the fact that information needed to be presented before the end of the next century, the examiner was only able to collect and process five million of these documents (around 40,000,000 pages, or 0.01% of the total number of pages). This challenge was further exacerbated by the storage of this data on “arcane, outdated or non-standard" systems, said the report by Anton Valukas of Jenner & Block.
The Colombian central securities depository (CSD) Deposito Centralizado de Valores de Colombia (Deceval) has been appointed as the national numbering agency for the country, according to a recent letter from the CSD’s CEO Jorge Hernan Jaramillo Ossa. Deceval will therefore be responsible for allocating six character Classification of Financial Instrument (CFI) codes and 12 character International Securities Identification Number (ISIN) codes for securities in the Colombian market that are subject to the ISO 6166 and ISO 10962 standards.
The Financial Information Exchange (FIX) protocol began life in the early 1990s as an attempt to streamline financial transaction messaging between Salomon Brothers and Fidelity. It has since grown into the industry standard for transaction messaging between sell-side and buy-side practitioners worldwide, and is being adopted by exchanges and other execution venues as the messaging protocol for trading participants.
He may be on his way out the door, but UK Financial Services Authority (FSA) chief exec Hector Sants seems determined to deliver a few parting shots to ensure that financial services firms tackle their risk management failures. In order to boost its success in this endeavour, the regulator will be hiring another 460 staff members and will be looking for those with industry experience of dealing with internal risk management systems within the financial institutions it wants to police.
A-Team Insight Exchange is a new event series for 2010, which will combine A-Team’s expertise in financial markets IT with thought leadership from world-class technology innovators and practical experience from financial market practitioners.
Last month, the International Organisation of Securities Commissions’ (IOSCO) Technical Committee published the details of the new agreed template for the global collection of hedge fund data in order to better manage systemic risk. These new data requirements are aimed at bringing a new level of transparency to the traditionally opaque sector but will, in effect, mean that these funds will be forced to invest in data systems similar to their more conservative buy side counterparts.
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