Data Management

  • 1238

    DATA MANAGEMENT: the key to greater insight, automation and personalization, but how do we get there?

    Businesses around the world are looking to leverage data for value-generating activities more effectively. They are spending a significant amount of time and effort thinking about innovative and strategic approaches to mature their data programs. Many organizations have ambitions to be in the advanced stages—beyond using predictive analytics to optimize data-driven processes and toward using machine learning to actually improve customer journeys. Some may be close. However, the truth is most organizations lack a strong data governance framework, which hampers their ability to use data as a strategic asset and drive value. In this article, Paul Gibson and Nam Tran [...]
  • 1227

    SIMM: tackling the initial margin obligation in OTC derivatives

    Regulatory reforms following the financial crisis have tested banks’ ability to adapt and fundamentally changed business models. The Standard Initial Margin Model (SIMM) is another addition that could reshape many derivatives trading and risk management practices. In this article, Sapient Global Markets’ Thomas Schiebe and Sendi Cigura in partnership with Patrice Touraine and Matthieu Maurice of Global Market Solutions look at what it means for banks and how they must tackle a new wave of data and technology challenges. Following the introduction of mandatory clearing for standardized derivatives, regulators created measures to deal with non-centrally cleared and non-standardized derivatives. This [...]
  • 900

    THERE IS NO SUCH THING AS HARMONIZATION: so let’s get good at translation

    With another major regulatory reform bearing down on the financial services industry, organizations are realizing that a one-size-fits-all data reporting solution is out of reach. However, with the right approach, firms have the opportunity to become more nimble around the growing list of regulations and establish a competitive advantage. In this article, Randall Orbon, Brian Lynn and Mahima Gupta explain why firms need to shift their mindset from the idealistic quest for a universal industry standard to one that focuses on enabling message translation in the most efficient way possible to avoid regulatory scrutiny and reduce costs. Download the PDF [...]
  • 923

    STATE OF DATA GOVERNANCE: the challenge to make data management programs operational

    Data management is gaining stronger traction across the financial services industry thanks to stringent regulatory requirements, such as BCBS 239. However, with increasing regulatory demands comes the issue of sustainably operationalizing data management programs. In this article, Gavin Kaimowitz outlines the challenges firms face when rolling out these programs throughout their entire organization and the steps needed to achieve operational success that enables a path to growth and greater revenue. Download the PDF Global financial institutions are coming to the realization that the business processes and operational models they have relied on in the past won’t necessarily help them succeed [...]
  • 984

    MISMO: data standardization in the age of housing finance reform

    The burst of the housing bubble in 2007 brought a wave of change in the US residential mortgage market. From tighter underwriting standards and stricter disclosures per regulatory guidelines in the primary market to a secondary market placed under conservatorship, organizations across the entire industry have had to adapt to this changing paradigm. Regulators, borrowers and investors are seeking more transparency in hopes of preventing a second mortgage crisis. In this article, Jocelyn St. James discusses the industry’s increased adoption of the Mortgage Industry Standards Maintenance Organization (MISMO) data standard, and how, by enabling market players to build upon a [...]
  • 924

    EMRR: a crucial component to successful risk management

    Exceptions, or processing failures due to erroneous data, are a daily occurrence for market participants as they fulfill their regulatory reporting obligations. However, as regulators seek more granular data for over-the-counter (OTC) derivatives trading activity, exceptions are becoming more frequent and more complex. That’s driving the need for exception management in regulatory reporting (EMRR), which is the process of identifying, investigating and resolving conflicts during data reporting transfers. In this article, Basu Bishal and Rohit Narula explain why EMRR should be a component of every trading firm’s risk management system and how effective implementation can minimize compliance costs while freeing [...]
  • 161

    DATA QUALITY FOR ANALYTICS: clean input drives better decisions

    Organizations are increasingly relying on analytics and advanced data visualization techniques to deliver incremental business value. However, when their efforts are hampered by data quality issues, the credibility of their entire analytics strategy comes into question. Because analytics traditionally is seen as a presentation of a broad landscape of data points, it is often assumed that data quality issues can be ignored since they would not impact broader trends. But should bad data be ignored to allow analytics to proceed? Or should they stall to enable data quality issues to be addressed? In this article, Niko Papadakos, Mohit Sharma, Mohit [...]
  • 57

    OTC DERIVATIVES: the data management challenge, risks and opportunities

    Even as regulators struggle to harmonize significant inconsistency in rules across jurisdictions, they are now shifting from rulemaking to enforcement. To avoid the risk of noncompliance, trading firms are beginning to invest in data management as a discipline within their organizations. As internal architectures are reshaped, costs will likely increase in the short term. However, the return on investment is potentially exponential. In this article, Paul Gibson and Matthew Rodgers discuss how poor data management practices and a fundamental lack of standardization still pose a risk in the over-the-counter (OTC) derivatives markets. But as businesses work toward providing regulators with [...]
  • 538

    Success Factors of an Industry Utility: an interview with the European DataWarehouse’s Markus Schaber

    Following the 2007/2008 economic crisis, there was an increased need to improve transparency and restore investor confidence in the European securitization market. In 2009, the structured finance industry, spearheaded by the European Central Bank (ECB), came together to address the problem. Their efforts resulted in a vision to create a European central data repository that would offer visibility and timely access to standardized loan-level data provided by originators to all market participants. In 2010, the ECB took the next step by announcing its intention to establish loan-level data requirements in order to pledge ABS as collateral in the Eurosystem. Today [...]
  • 717

    EVIDENCE-BASED MANAGEMENT: a practical management approach for the energy industry

    The rapid growth over the last five years of natural gas, gas liquids and crude oil activity in shale basins has single-handedly changed the global nature of energy production. The impact on companies in the upstream, midstream and downstream sectors is seen in increased competition for supply and markets as well as human and financial capital. Complicating ongoing business management is the large amount of data from sprawling assets that needs to be analyzed and acted upon in a narrow real-time window through a compelling format. In this article, Eric Scheller discusses the challenges and options facing business directors as [...]