Data Quality's Regulatory Vulnerability
Regulation & Standards special report Q&A with Mark Bands of ANZ Institutional Bank
What facet of data operations is most vulnerable to regulatory compliance issues?
Data quality management. There is now an unprecedented need to collect, evaluate, categorize, compile and report information to regulators. The January 2014 report by the Senior Supervisors Group of the New York Federal Reserve Bank highlighted ongoing issues within banks related to the need for both timeliness and quality in the underlying reporting data. The nexus of data virtue and the need for speed remains the single-most at-risk aspect of data operations today.
How prepared is the industry to comply with new regulations addressing derivatives data management issues, such as AIFMD and CFTC rules?
Across the industry-hedge funds, investment banks, broker-dealers and exchanges-the level of preparedness with respect to data quality, operating model development and technological capability remains misaligned. This is due to firms having started from dissimilar baselines. More practically, different firms have demonstrated divergent levels of organizational flexibility needed to meet the host of challenges presented by the ever-evolving regulatory context.
Has the proliferation of transaction and customer identifiers proved beneficial to data management?
It has. The legal entity identifier, unique swap identifier, unique product identifier and unique trade identifier are all unique, unambiguous and universal codes for use in financial transactions. These are aimed at enabling data aggregation across different business units of multiple financial firms, globally. They have not yet provided the transparency panacea regulators hoped for, but data managers now have a data "genome" with which they have at least commenced trying to meet mapping and aggregation goals.
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.
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 Trading Tech
Interop after acquisitions remains daunting for buyers
Executives from a variety of vendors speaking at WFIC explained why desktop interoperability is important and why progress has been slow.
Should banks risk lightning hitting twice for CrowdStrike?
Bank tech teams divided on whether to give security vendor a second chance after update crash.
Northern Trust adds fixed-income capabilities for outsourced trading in Asia-Pacific
The custodian bank now offers 24/6 fixed-income trading coverage with desks in Chicago, London, and Sydney.
South Africa’s equity markets court HFTs with tech upgrades
Competition for flow has driven innovation in connectivity, risk, and data provision.
Dealer relief at delays to Refinitiv Matching’s tech migration
First phase of replatforming for Swiss spot pairs set to be pushed to mid-2025.
Kepler Cheuvreux builds proprietary execution platform with Adaptive
The broker wants to move away from third-party technologies as DORA’s risk management requirements could make vendor relationships more cumbersome.
Let’s grow the third-party risk playbook – CME security chief
The CrowdStrike outage has highlighted the need for the financial sector to adjust its game plan.
Facing platform shutdown, former IEX Cloud head buys its assets in 11th-hour bid
Tim Baker, Pedro Aguayo, and a silent partner have come together to purchase IEX Cloud’s assets days before the exchange was to retire all its products on August 31.