NEW YORK, June 10 /PRNewswire/ -- A major hurdle to achieving a consistent view of pricing, positions and exposure lays in the divide between market data feeds and reference data repositories, according to GoldenSource, a global software provider of enterprise data management (EDM) solutions.
Pricing mechanisms in the front office and valuations for PL in the back office often depend on the same price and rate data, yet both areas derive this information from disparate sources. According to research* from consultancy A-Team Group, 87 percent of risk managers are interested in centralizing market and reference data, namely to address the following:
- Volatility - unprecedented market movements are impacting portfolios, customers, counterparties and issuers faster than ever; back-office risk and PL systems can no longer wait until end-of-day to access critical market data - Accuracy and consistency - because of the similarity, regulators are expecting much of the same data used in the trading decision process to be extended to valuation, PL and risk management - Multi-source validation for middle- and back-office valuation - regulatory and client demands for insight into how a value was derived means that golden copy pricing needs to extend beyond static reference sets and include multiple market data sources - Elimination of asset-based silos: siloed desks have traditionally been blamed for the inability to get a complete view of risk and exposure; these silos are now being broken down, yet the divide between market and reference data persists
By definition, enterprise risk management and reporting should go front-to-back as well as across assets, says Gert Raeves, VP of Strategic Business Development at GoldenSource. A trusted data environment for interdependent front- and back-office processes now relies on the centralization of market and reference data. With market data, there is a convergence point where a snapshot of the market can be captured and validated for downstream applications.
To arrange an interview with GoldenSource for further insight on the convergence of market and reference data, please contact Sheryl Lee or Daniel Diaz at Metia: sheryl.lee@metia.com/daniel.diaz@metia.com
For more information on GoldenSource, please visit http://www.thegoldensource.com/
* Risk Management Drives Cross-Enterprise Data Connections, January 2009
To arrange an interview with GoldenSource for further insight on the convergence of market and reference data, please contact Sheryl Lee or Daniel Diaz at Metia: sheryl.lee@metia.com/daniel.diaz@metia.com
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