• inside_market_data
  • inside_reference_data
  • buy_side_technology
  • sell_side_technology
michael-shashoua-waters
Michael Shashoua, editor, Inside Reference Data

Compatible Messaging Standards Are Key To Brazil’s Emergence

  • Send
  • Comment
  • Send to Kindle

The presence of proprietary standards for evaluated pricing data in Brazil handcuffs that market from shedding its "emerging" label.

The opportunities that emerging markets typically offer, especially when established and mature markets aren't doing so well, aren't always as great as they might seem at first glance. Recently, Inside Reference Data reported on the scarcity of evaluated price information in emerging markets, which is an obstacle to getting accurate and fast pricing data. An evaluated pricing professional observed that in any new market, information is generally going to be scarce. Developing markets aren't able to match the timeliness of data delivery seen in developed markets.

Therefore, firms doing business in the developing markets have to spend to support their front offices' abilities to get timely data sources. The key to spending wisely toward that goal, however, means taking a wider view of what areas within a firm are keys to achieving faster data, including personnel, infrastructure and operational professionalism.

Add to this the other hurdles for data management in emerging markets, particularly proprietary standards – specific to a single country's markets. The Brazilian markets are a good example of this. Brazil has in some ways graduated out of emerging market status, achieving greater transparency and attracting data providers and services both large and small. These outside providers face competition from established local providers who have an advantage of being better suited to their home turf. The outside providers' infrastructure can be too far ahead of what Brazilian systems can accommodate.

Having such incompatible standards seems counter-intuitive when organizations such as Swift are trying to make data and messaging standards compatible and consistent worldwide. The industry co-operative is making inroads in working with the relevant parties in that country. "We have to be able to go after local markets and ask what we can do to help the industry with transaction flow to Latin American markets or make it more consistent and standardized around the world," says Eileen Dignen, managing director, banking accounts and initiatives, at Swift.

The outside data providers in an emerging market such as Brazil will have a harder time focusing their investment on improving the quality and speed of data if proprietary standards remain the only game in town. Addressing this issue is a necessary step for a market that is trying to shed its "emerging" label.

  • Send
  • Comment
  • Send to Kindle

More from Inside Reference Data

Sign-up for WatersTechnology email newsletters

Register for regular alerts to receive up-to-date news directly into your inbox

Related Articles

Latest Media

Events

Visitor comments Add your comment

  

Add your comment

We won't publish your address

By submitting a comment you agree to abide by our Terms & Conditions Your comment will be moderated before publication

Submit your comment

Winner's Announced: Inside Reference Data Awards 2014

View the winners...

The winners of the 12th annual Inside Market Data Awards 2014 and Inside Reference Data Awards 2014 were announced in New York on May 21, recognizing industry excellence within market data and reference data. To view the winners across the 31 categories click here.

imd-ird-awards-logo-2014

Training

Latest Whitepapers

waters-equinix-whitepaper-may2014

Tackling Teething Troubles: Examining the Current State of the OTC Derivatives Market

The over-the-counter (OTC) derivatives market is in the midst of a global regulatory restructure. Authorities in Europe, Asia and the US are currently...

eagle-whitepaper-jan2014

A data-centric approach to portfolio management

A fast, flexible and reliable investment decision-making process must be based on access to accurate and consistent information throughout an organization....