FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

Reference Data: Tech Mahindra Details Global Data Utility Based on Acquired UBS Platform

Tech Mahindra, a business process outsourcing specialist and parent of London-based investment management technology consultancy Citisoft, has repositioned a reference data platform acquired from UBS Global Asset Management to offer an offshore reference data utility aimed at meeting market demand for lower cost, high quality data that can reduce risk and increase efficiency.

The global data utility has been introduced under the Tech Mahindra Managed Data Services brand and offers securities reference data across all asset types, reference data for corporate actions, tax information and end-of-day and intra-day validated pricing data. The utility handles data cleansing and validation, with clients buying licences to access the data.

Tech Mahindra suggests the utility differs from other offerings in the enterprise data management market as it is owned by the company and can be developed. It is also agnostic on data feeds, including 20 from vendors including SIX, Markit, Bloomberg, Thomson Reuters and DTCC.

The company’s first customer is UBS Fund Services in Luxembourg. Under the terms of a five-year services contract with UBS, Tech Mahindra will create and store golden copy data and provide multiple intra-day golden copies to the asset manager. As part of the acquisition and customer deal, Tech Mahindra, which is headquartered in Hyderabad, India, will take on some staff from UBS Global Asset Management who were working on the platform in Luxembourg, but most staff will be located in India.

As a repositioned platform, Tech Mahindra MDS already covers all time zones, markets and asset types, updates 2.5 million issuers on a daily base, receives 200,000 customer price requests and validates 75,000 prices. Some 20,000 corporate actions are checked every day, along with 1,800 tax figures. Looking forward, Tech Mahindra plans to extend these metrics and add reference data around indices and benchmarks, legal entity identifiers and clients.

While Tech Mahindra will lead sales of the service to the banking, financial services and insurance sectors, Citisoft will be able to provide consultancy as necessary. Steve Young, CEO of Citisoft, says Tech Mahindra MDS has been designed to improve data quality and drive down the total cost of data ownership, in turn reducing risk and increasing efficiency. To manage clients’ cost issues, the company has built a toolkit into the data management system that allows users to analyse the cost of owning data, including people, processes and technology. Data quality will be underpinned by service level agreements and key performance indicators will be added as more clients sign up for services and data volumes grow.

Reflecting on the data challenges faced by financial firms, Citisoft Group CEO Jonathan Clark, concludes: “Outsourcing models have evolved over time and attitudes are changing as firms acknowledge that there is a big difference between outsourcing and offshoring, and that captive outsourcing is not an efficient approach. The need is for a commercial relationship with a centralised data utility that can deliver high-quality, accurate data and a lower total cost of ownership.”

Source: Reference Data Review, 24.07.2013

Filed under: Corporate Action, Data Management, Data Vendor, Market Data, Reference Data, Standards, , , , , , , , , , , , , , , , ,

LEI-Dealing with Reality – How to Ensure Data Quality in the Changing Entity Identifier Landscape

“The Global LEI will be a marathon, not a sprint” is a phrase heard more than once during our series of Hot Topic webinars that’s charted the emergence of a standard identifier for entity data. Doubtless, it will be heard again.

But if we’re not exactly sprinting, we are moving pretty swiftly. Every time I think there’s nothing more to say on the topic, there is – well – more to say. With the artifice of the March ‘launch date’ behind us, it’s time to deal with reality. And the reality practitioners are having to deal with is one that’s changing rapidly.

Down load full and detailed report.

LEI-Dealing_with_reality-how_to_ensure_data_quality with Entity Identifiers_06_13.pdf

Source: A-Team, 26.06,2013

Filed under: Data Management, Data Vendor, Library, Reference Data, Standards, , , , , , , , , , , , , , ,

SIX Financial Information and LUZ Engenharia Financeira in strategic cooperation in Brazil

Zurich, Switzerland – SIX Financial Information and LUZ Engenharia Financeira, the largest provider of risk management software and consulting services to buy- and sell-side institutions in Brazil, have established a strategic relationship to meet the growing need for broader and deeper international financial market data in Brazil.

As Brazil’s investment community increasingly turns to foreign markets to achieve superior returns, reliable, high quality pricing and reference data becomes more important every day. SIX Financial Information, a leading provider of global financial information since 1930, will fill that need for clients of LUZ Engenharia Financeira.

Edivar Vilela Queiroz, CEO of LUZ Engenharia Financeira commented, “While the Brazilian financial services community has been well served by local data providers, SIX Financial Information has the breadth and depth of global market data to support current needs as well as the capacity to grow as our local market evolves.” He continued, “And as the world’s markets become ever more connected and transparent, this is an important differentiator that will allow seamless growth into offshore markets.”

“As Brazil becomes a major force in the global financial markets, foreign investors will undoubtedly continue their steadily increasing interest in the Brazilian markets and help foster even more growth,” said Barry Raskin, Managing Director for SIX Financial Information USA. “We are excited to extend our focus to this vibrant market, and very pleased that LUZ-EF has given us their stamp of approval through this strategic partnership.”

On Wednesday, March 13 2013, SIX Financial Information and LUZ-EF will jointly host a client event in São Paulo where they will formally announce their partnership and describe the international equity and options pricing and reference data available through the LUZ-EF platform.

Source: SIX Financial Information, 12.03.2012

Filed under: Brazil, Data Management, Data Vendor, Reference Data, , , , , , , ,

Reference Data Review Special Report: Impact of Derivatives on Reference Data Management

They may be complex and burdened with a bad reputation at the moment, but derivatives are here to stay. Although Bank for International Settlements figures indicate that derivatives trading is down for the first time in 10 years, the asset class has been strongly defended by the banking and brokerage community over the last few months.

The industry is, however, on course for a significant overhaul of the regulatory regime governing the OTC derivatives market, both in Europe and the US. This, of course, means that the post-trade processing of these instruments is set for big changes. Credit default swaps (CDSs) are the first of the credit derivatives to be ushered onto clearing counterparties in a bid to reduce counterparty risk, but they will likely not be the last.

Moreover, the market is also awaiting the introduction of an alternative standard to the current five character Options Price Reporting Authority (Opra) codes next year. Earlier this year, the Options Clearing Corporation (OCC) was named as the operator of the new options symbology system, which has been estimated to cost the industry around US$250 million to introduce.

All of these changes are likely to have a significant impact on the data management systems for these complex instruments, requiring the introduction of new processes and procedures. A challenge indeed for the vendor community.

Download: Referene Data Impact of Derivatives RDR Special Report June 2009

Source: A-Team, 09.06.2009

Filed under: Data Management, Exchanges, Library, News, Reference Data, Risk Management, Standards, , , , , , , , , , , , , , ,

Challenging Year for Thomson Reuters, Bloomberg and Financial Information/analysis Market

Burton-Taylor International Consulting LLC, a leading financial news and market data research, strategy and business consulting organization, today released research showing the market shares of industry leaders Thomson Reuters (TRI) and Bloomberg to have increased slightly in 2008 to 34% and 24% respectively. The overall spend on financial information and analysis globally was flat year-on-year, as the industry exited 2008 at US$23.01 billion versus US$22.99 billion in 2007.

Although distant in terms of revenue, the fastest growing major data providers in the industry were FactSet, Interactive Data Corporation (IDC) and SIX Telekurs which now enjoy 2.5%, 3.3% and 1.2% global share respectively. The fact that the third, fourth and fifth biggest players hold less than 4% market share each only serves to underscore the duopolistic nature of the current market data industry.

Asia led all regions in 2008 with a 20.3% increase in spend, while Europe, Middle East and Africa (EMEA) grew at just under 7% and the Americas contracted by almost 10%. Thomson Reuters is the market share leader, with Bloomberg second, in each of the three regions. Quick sits third in Asia while SIX Telekurs is third in EMEA and IDC third in the Americas.

Burton-Taylor data shows that exiting 2008 the largest segment, in terms of total information and analysis spend worldwide, is Fixed Income/FX Sales & Trading. Investment Management is second largest, followed by Equity Sales & Trading, Corporate, Wealth Management, Commodities & Energy and a dramatically smaller Investment Banking segment.

A challenging year in 2009 is projected by Burton-Taylor, with negative 1-3% growth seen for the industry. The Americas will continue to contract. EMEA will remain flat but be supported by growth in the Middle East and Eastern Europe. Asia’s growth rate will be significantly less than recent years but still reach the low to mid-single digits, fueled by external investment from Japan and internal investment in China.

“Thomson Reuters and Bloomberg will face differing challenges and changing business focuses in 2009,” says Douglas B. Taylor, Managing Partner of Burton-Taylor. “At TRI, feeding the appetites of the growing ‘low latency’ and risk management monsters, as well as continuing to establish a foothold against strong competitor Dow Jones in the machine readable news market, are key priorities. At the same time, launching a new financial video service and rebuilding equity news to leverage their desktop dominance in the North American Wealth Management space will test the Company’s ability to both invest and seek overall margin improvement.”

“At Bloomberg the attention is directed at finding new revenue outside the core terminal business,” Taylor says. “Commitments to high margin datafeed sales, and to improved news coverage in China, are seen as significant opportunities, but successfully capitalizing on the strategies without cannibalizing existing revenue will require creative commercial models and deft execution in areas that are relatively new to the company.”

According to Taylor, “Both TRI and Bloomberg are facing these challenges at a time when the revenue insulation provided by their dwindling two and three year client contracts is rapidly eroding. Additionally, IDC’s continued aggressive approach to pricing and SIX Telekurs’ continued strong organic and acquisition-based growth may begin to dent the market shares of the ‘Big 2’. Maintaining revenue by Thomson Reuters and Bloomberg over the next 12-24 months will be strictly on the merit of their strategic planning and execution. Both companies are leaning heavily upon their proprietary news capabilities to help drive growth, which is one reason that Burton-Taylor in the coming weeks intend to publish the first ever, detailed comparative study of Bloomberg News versus Reuters News.”

“Because market participants are finding it increasingly difficult to differentiate services, we believe that our study ‘Bloomberg vs Reuters News – Analysis of International Services 2009’; a quantitative and qualitative analysis of Bloomberg News and Reuters News including regional and international content, daily and hourly volume, 3rd party redistribution, coverage breadth, coverage depth and commentary comparison, will provide a transparency and illumination that improves competition between industry participants and profitability of industry clients,” say Taylor.

Source: Burton-Taylor Internationalm 17.02.2009

Filed under: Corporate Action, Data Management, Data Vendor, Market Data, News, Reference Data, Trading Technology, , , , , , , , , , , , , , , , , , , , ,

Asia Reference Data Survey, London Stock Exchange

Explicit survey of the Asian reference data landscape, survey done on behalf of London Stock Exchange

Asia Reference Data Survey 2006 – English

Asian Reference Data Survey 2006 – Chinese

Asian Reference Data Survey 2006 – Japanese

Source: Finetik, 10.04.2006

Filed under: Data Management, Data Vendor, Exchanges, FiNETIK Articles, Library, Market Data, Reference Data, Risk Management, , , , , , , , , , , , , , , , , , , , , , , ,