Focus on Reference Data - Axis in the News
Axis Technology's Joe Santangelo, data and security expert, shares some insight on reference data management with Markets Media Magazine: Focus on Reference DataAmid pressure from regulators and clients, capital and commodity-market participants move toward more clarity of counterparty Capital markets firms face thorny challenges in managing reference data, a catch-all term denoting the counterparty names and identifiers that are needed to monitor a firm’s risk exposure. ... Reference-data management is fundamentally about coalescing information that may lie scattered about an enterprise into a logical whole. Inconsistent, incomplete or inaccurate reference data can undermine straight-through processing, or the optimization of transaction speed. “A large portion of a trade record is composed of reference data, and a significant amount of transactions breaks are caused by poor-quality reference data,” said Joseph Santangelo, principal consultant at Axis Technology, an IT consultancy for data management and security. “The costs to repair trades and correct mismatches are significant, and increase as errors pass through front- to middle- to back-office systems.” Managing reference data efficiently and cost-effectively has become especially vital for trading and investment firms amid much-faster trading speeds and the drive for increased transparency in the wake of the 2008-2009 financial crisis. Put simply, market participants need to be confident they will know their exposures if a big problem arises. To read the full article click here.