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July 2014 waterstechnology.com/ird Reference Data Technology Special Report Sponsored by Markets change. Be ready for it. Innovative technology solutions to help investment managers respond quickly and efficiently. Innovative software. International expertise. We adapt to regulatory, market and industry shifts to help you stay competitive, compliant and efficient. And with Eagle ACCESSSM, our secure private cloud, we can help alleviate the management of technology and resources. Data Management / Investment Accounting / Performance Measurement and Attribution Contact us today to learn how Eagle can help your business: Americas +1 781 943 2200 Asia Pacific +65 6432 0581 Europe +44 20 7163 3827 Mainland China +86 10 58771605 www.eagleinvsys.com Eagle Investment Systems LLC, a leading provider of financial services technology, is a division within BNY Mellon Asset Servicing and is a wholly owned subsidiary of The Bank of New York Mellon Corporation. ©2014 Eagle Investment Systems LLC. All rights reserved. Editor’s Letter Fluid Playing Field The thought leadership provided in this special report on reference data technology makes a good complement to the coverage in the July issue of Inside Reference Data. As outlined in the issue’s “Golden Copy,” sharing the burden or responsibility for data management tasks is a smart path to innovation and progress on the handling of data. The data experts who contributed to this report’s Virtual Roundtable also point to the need for greater agility in responding to business demands with data management solutions. Eagle Investment Systems’ Paul McInnis states that firms are seeing the difficulty of predicting what they need from their data and therefore must keep data management solutions flexible. SmartStream’s Adam Cottingham emphasizes that data is an asset but is often under-processed and not shared. Still, ANZ Institutional Bank’s Mark Bands reminds us that innovation and collaboration, particularly with reference data technology, do have to take place within certain bounds. Data management platforms must integrate with different data vendors, legal entity identifier administrators, and know-your-customer data providers, as well as manage counterparty data and keep identifications synced. Increased data volumes and storage options, including the cloud, have created demand for data solutions that can support enterprise data management strate- gies, McInnis also notes. He confirms that data governance is getting greater emphasis, drawing on firms’ business management to be more involved in data management decisions. This squares with consultant Rares Pateanu’s observa- tions in our regular issue about centralization of data governance continuing to challenge many in the industry. The business and operational climate, as these experts see it, is now fluid enough to allow innovative changes in reference data technology to occur. Yours sincerely, Michael Shashoua Editor, Inside Reference Data Email: [email protected], Tel: +1 646 490 3969 waterstechnology.com/ird July 2014 3 smartstream-stp.com Someday all your operational processes will work together. Someday is today. The need for financial institutions to re-engineer their global operations has become very real. Only SmartStream offers a new industry standard for a cross-enterprise solution where middle and back-office processes share the same platform. Talk to us today and discover this new approach for yourself. Contents FEATURES NEWS 8 Virtual Roundtable 6 Collibra Offers Data Stewardship Inside Reference Data Automation gathers together leading data management professionals to 6 SunGard Launches Risk Reporting discuss the latest advances in Service for Hedge Funds reference data technology 7 AIM Commits to Three-Month, 14 Q&A Fixed-Price Implementations Indrajit Chatterjee, senior manager of wealth management 7 News Download technology solutions at Scotiabank in Toronto, tells Inside Reference Data how regulation has pushed reference data technology towards holistic enterprise-wide views July 2014 waterstechnology.com/ird Reference Data Technology Special Report Sponsored by Incisive Media © 2014 Incisive Media Investments Limited. Unauthorized 28–29 Haymarket, photocopying or facsimile distribution of this copyrighted newsletter is prohibited. All rights reserved. ISSN: 1750-8517 London SW1Y 4RX waterstechnology.com/ird July 2014 5 News Review Collibra Offers Data Stewardship Automation Data management automation provider can’t see what people are doing and Collibra has launched its new Financial you can’t track who’s doing what.” Services Suite, supporting its Data With the Suite, Collibra has set out to Governance Center platform and address data stewardship by assigning making it possible to automate data roles and responsibilities for data to stewardship processes, according to different business units and estab- company officials. lishing workflows for defining data “Typically, there’s a core data gover- elements, or approving new reference nance group that coordinates data data elements, explains Verhaeghe. governance actions,” says Benny “If there’s no responsibility assigned, Verhaeghe, vice president of sales the software can automatically go a and marketing at Collibra. “If this is level higher in the organizational struc- not automated, people meet and send ture and find the steward or whoever emails to each other—there’s no stan- responsible at the higher level to pick dard process established, and the result up where this was left,” he says. is there’s no auditability because you Michael Shashoua SunGard Launches Risk Reporting Service for Hedge Funds Financial industry operations software equity and specialized credit funds. and services provider SunGard has Users of the service upload posi- launched a new risk reporting service tion information via a secure SunGard for hedge funds, providing indepen- network. The data is validated by dently validated data and analytics. SunGard’s managed service team The Hedge360 Risk Reporting against SunGard APT’s risk model data- Service provides detailed risk attribu- base, to highlight exceptions or queries tion and stress testing, as required by quickly before proceeding to the risk regulations such as the Alternative engine for overnight report generation. Investment Fund Managers Directive The service is available to hedge funds in Europe. that are not already users of SunGard’s Risk reports can also be customized Hedge360 platform. for commodity strategies, long/short Nicholas Hamilton 6 July 2014 waterstechnology.com/ird News Download AIM Commits to Three-Month, Markit, Genpact Unveil KYC Services Fixed-Price Implementations Data services provider Markit and business process and technology Enterprise data management (EDM) soft- provider Genpact have launched ware provider AIM Software responded their joint know-your-customer in May to the open-ended nature of some (KYC) services. Markit-Genpact implementation projects by announcing KYC Services are intended to help that its pricing and corporate actions applica- users streamline client onboarding tions could be implemented by August for a and reduce costs, by centralizing fixed price. the collection and management of In October 2013, AIM launched the GAIN KYC data. The new services build Portfolio Pricing application, which scrubs on existing capabilities of both and validates pricing data and the GAIN providers, including Genpact’s Corporate Actions DM application, which Remediation as a Service platform processes corporate action announce- and Markit Counterparty Manager ments. The applications have since been implemented at a wealth manager and asset DTCC, Euroclear Collaborate manager in a three-month period and within on Collateral Processing a pre-negotiated budget. AIM now says it can The Depository Trust and implement the applications at other financial Clearing Corporation (DTCC) and institutions within the same period and for a Euroclear are planning a utility fixed, pre-negotiated price. that will provide straight-through Michael Walford-Grant, AIM’s London- processing (STP) of margin obliga- based country manager, says AIM had focused tions and a utility for sub-optimal on building solutions in response to the speci- collateral mobility and allocation, fications of individual clients. But its new to be operated as a joint venture. application-based approach has allowed it to The Margin Transit Utility respond to customers’ desires for vendors to (MTU) is intended to provide STP be clear about the time and cost of implemen- for agreed margin calls, while the tation. “As there are so many less unknowns Collateral Management Utility [when implementing an application], we can (CMU) is planned to enable users be much more specific and make these sorts to consolidate their assets in a of commitments,” says Walford-Grant. single inventory and collateral Nicholas Hamilton management system. waterstechnology.com/ird July 2014 7 Virtual Roundtable Driving Forces Inside Reference Data gathers together leading data management professionals to discuss the latest advances in reference data technology What is the climate for reference There’s no question data quality and regu- data technology decisions as you see latory demands continue to be relevant it? Are regulatory concerns promi- factors in driving technology decisions. nent or is a desire for data quality Certainly, the need to evaluate risk and driving decisions on its own? provide transparency is a central compo- Mark Bands, data management stream nent of the regulatory