The OFR Factor

This month, I’ve heard industry contacts say we at Inside Reference Data are not the only ones chasing data stories. Even journalists from the mainstream press have started writing about financial information. And this is not without reason.
After President Obama signed the Dodd-Frank Wall Street Reform Act, it has become difficult to have any industry conversations without talking about the new data collection and research center that will be established, the Office of Financial Research (OFR). For the reference data industry, it is not clear what the implications will be. Market participants say they are in a wait-and-see mode and some are running internal meetings to assess the potential impact.
The consensus seems to be that the first director of the OFR will be very influential in how the centre will work in practice. Everyone wants to know who others are recommending as candidates for this position, and many suggest it would be an added benefit to have someone with industry experience, who understands the pain points (see page 1).
The main challenge for the new Office will be to convince the critics that this set-up can work at a US-level. The global financial crisis proved how the markets were very much interconnected, and there appeared to be a need to better monitor systemic risk at an international level. The question now is if there is scope for regulators to collaborate, and come up with standards and formats that can be adopted globally to at least make it easier to analyze data.
Still, some say this could be taken one step further. Basel II works as an international directive. Could we see the introduction of something similar for the purpose of collecting and analyzing data to monitor systemic risk?
Right now, it is impossible to predict how it will all pan out. The bill can be seen as pretty vague in relation to reporting requirements, and some suggest this will help give the OFR power to assess the best possible ways to implement it.
So far, it is really the vendors that seem to be the most focused on identifying opportunities. There is already recognition that data management software vendors may be able to help clients with position management, as position data is one of the data types mentioned in the Act. The expectation now is that vendors will be pushing out new and improved modules for this purpose, linking it into existing data management platforms (see page 9).
For me, the next event on the road map is a different type of link-up. Later this month, I will be going back to Norway to get married, and my colleague Carla Mangado, staff writer, Inside Reference Data, will be acting editor for the September issue. I look forward to discovering how much more mainstream the market has become by the time I return.
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: https://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.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
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. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
The great disappearing internet—and what it could mean for your LLM
AI-generated content, bots, disinfo, ads, and censorship are killing the internet. As more of life continues to happen online, we might consider whether we’re building castles atop a rotting foundation.
AI’s next gig: The rising cost of off-channel communications compliance
As the cost of analyzing communications increases, what tools can firms deploy to save time and money while avoiding penalties?
CAT on life support after appeals court ruling
Ahead of a comprehensive review promised by the SEC, lawyers believe that the recent overturn of the Consolidated Audit Trail’s funding order could herald its demise.
Euroclear readies upgrade to settlement efficiency platform
Euroclear, Taskize, and Meritsoft are working together to deliver real-time insights and resolution capabilities to users settling with any of Euroclear’s CSDs.
Messaging’s chameleon: The changing faces and use cases of ISO 20022
The standard is being enhanced beyond its core payments messaging function to be adopted for new business needs.
TT partners Thoma Bravo, Fitch launches GenAI solution, AI infrastructure woes, and more
The Waters Cooler: EquiLend acquires Trading Apps, Ultumus and BMLL partner for ETF data and analytics, and more in this week’s roundup.
CAT funding plan struck down by US appeals court
The 11th Circuit court ruled that the SEC had not established a sufficient precedent to pass the costs of the Consolidated Audit Trail on to broker-dealers.
T+1 for Europe: Crying wolf or real concerns?
Brown Brothers Harriman’s Adrian Whelan asks how prepared the investment industry is for the changes ahead, and if concerns about its implementation are justified.