The Risk Rationale
Last week in this space, I observed that efforts to centralize reference data are increasing and suggested that the industry include proposals to obtain data from its original source, the issuer, in any centralization and integration of data.
Something else that also ought to figure into conversations about data management methods is the role of standards in organizing data for such a centralization effort, as well as for identifying how data was generated. These are the necessary tools to implement centralization, with or without more direct, original sourcing for data.
The EDM Council and Object Management Group (OMG) have been working for months on their Financial Industry Business Ontology (FIBO), a semantics standards initiative, and in recent weeks, the OMG's internal finance and architecture departments signed off on the specifications of FIBO.
Alongside past and present standards initiatives such as XBRL and the legal entity identifier, what all these data management efforts are aimed at is reducing risk. The industry appears to be getting increasing cooperation, both among major global firms and among different markets and countries worldwide, when it comes to such standards.
The increasing collaboration, when it comes to FIBO at least, is fueled by "mutual self-interest," as David Saul, a senior vice president and chief scientist at State Street Corporation who works on FIBO with the EDM Council and the OMG, puts it. "Reducing risk is something we all have to do," he says. "Semantic technology and an ontology gives us a standard way to communicate when talking about entities and relationships." The result is that data management professionals can write programs based on FIBO indicating equivalent items and therefore reducing data translation needs.
Part of my conclusion in last week's column was that increasing data accuracy would result from sourcing data closer to its origin. Having data semantics standards in place, using FIBO provides another piece of the puzzle that data managers have been trying to put together, whether they centralize all their data or not.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
Hub to lay off 20% of staff, sources say
Hub’s CEO says this is simply a case of a startup trying to stay nimble and efficient; others say it points to deeper issues.
TS Imagine integrates LTX’s pre-trade analytics tool
Users of the fixed-income EMS will now have access to LTX’s Liquidity Cloud tool, which provides a pre-trade score for the likelihood of trading success.
After contentious Opra upgrades, vendors brace for a faster future
Upgrades to the datafeed widely used to gauge the current market price for options contracts went into effect in February after three separate delays, which market participants say were caused by persistent bandwidth issues at some important recipients.
The IMD Wrap: No more turf wars, or why CDOs should heed the Voice of the CTO
Max reviews how our recent Voice of the CTO series has implications for those beyond a firm’s technology function, and how communication and collaboration between tech, data, and leadership will deliver better results.
Dark horse: Deutsche Börse building dark pool
New functionality allowing exchange members to execute sweep trades comes hot on the heels of European rival Euronext launching its own dark pool.
Man Group’s proprietary data platform is a timesaver for quants
The investment firm’s head of data delves into its alt data strategy and use of AI tools to boost quant efficiency.
Waters Wrap: The tough climb for startups
Anthony speaks with two seasoned technologists to better understand why startups have such a tough time getting banks and asset managers to sign on the dotted line.
As crypto ETFs become reality, benchmark providers take center stage
The SEC’s approval of the first spot bitcoin ETFs will expose a growing number of traditional market participants to the maturing world of crypto data, a moment that some—such as CF Benchmarks, BlackRock’s benchmark provider—have been eagerly awaiting.
Most read
- Women in Technology & Data Awards 2024: All the winners and why they won
- Witad Awards 2024: Above and beyond award (vendor)—Susan Bennett, Tradeweb
- Fighting FAIRR: Inside the bill aiming to keep AI and algos honest