Not the Home Stretch
At the recent 20th edition of financial industry trading communication association ISITC's flagship annual Boston conference, new chairman Jeff Zoller pointed out that data management, performance and reporting capabilities are being stretched further than ever before to provide data to consumers in more customized and individualized formats.
ISITC plays a big part in helping shape industry standards for messaging, and its members and officials work a great deal on data issues, advocate for certain responses to regulation and promote communications and identification standards that guide and govern securities reference data.
Before being able to "stretch" data, as Zoller observed, firms obtaining data from hedge funds and prime brokers must normalize it. This is of particular interest because of an increase in alternative investments, including hedge funds, along with REITs, private equity and exchange-traded funds. Deutsche Bank's annual investment survey projects that hedge fund assets alone will rise from $2.6 trillion at the end of 2013 to $3 trillion at the end of this year.
Before traditional managers can proceed with building operational capabilities in-house or buy systems for the new risk-based approaches that alternative investment forms demand, they must think about how they will develop data analytics capabilities, Zoller said.
Within this industry environment, identifier registration – the oft-discussed legal entity identifier (LEI) – and compliance with AIFMD, UCITS V and EMIR, to name just a few new regulatory mandates, are going to generate massive amounts of data. A single German firm's AIFMD application to its local regulators runs to 200,000 pages, as Zoller noted, and license applications in that country alone number many thousands more pages. Similarly, the industry is trying to keep up with EMIR reporting requirements that began in February, mandating unique trade identifiers based on having established LEIs, which themselves are not all there yet.
For the year ahead, the financial services industry ought to focus on gaps like these that are still out there, Zoller said. With the range of data to be collected, managed and reported continuing to expand, the systems and strategies being used or conceived to deal with it will have to at the same rate to keep up.
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 Regulation
Verafin launches genAI copilot for fincrime investigators
Features include document summarization and improved research tools.
Waters Wrap: Open source and storm clouds on the horizon
Regulators and politicians in America and Europe are increasingly concerned about AI—and, by extension, open-source development. Anthony says there are real reasons for concern.
DSB says industry is ready to meet UPI mandate ahead of deadline
The Unique Product Identifier will be required for certain OTC derivatives in the EU at the end of April, following US adoption in January.
‘Very careful thought’: T+1 will introduce costs, complexities for ETF traders
When the US moves to T+1 at the end of May 2024, firms trading ETFs will need to automate their workflows as much as possible to avoid "settlement misalignment" and additional costs.
Court case probes open-source licenses as movement stands at crossroads
The Software Freedom Conservancy’s lawsuit against TV-maker Vizio begins trial in California, raising questions about open-source licenses and the risks posed by adhering to them.
Waters Wavelength Podcast: Countdown to T+1
DTCC’s Val Wotton joins the podcast this week to discuss the impending move to T+1 in the US.
Consolidated tape hopefuls gear up for uncertain tender process
The bond tapes in the UK and EU are on track to be authorized in 2025. Prospective bidders for the role of provider must choose where to focus their efforts in anticipation of more regulatory clarity on the tender process.
Fighting FAIRR: Inside the bill aiming to keep AI and algos honest
The Financial Artificial Intelligence Risk Reduction Act seeks to fix a market abuse loophole by declaring that AI algorithms do not have brains.
Most read
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- Deutsche Börse democratizes data with Marketplace offering
- Waters Wavelength Podcast: Broadridge’s Joseph Lo on GPTs