Interactive Data Corporation (NYSE: IDC), a leading provider of financial market data, analytics and related solutions, today announced that its Pricing and Reference Data business has unveiled a Business Entity Service to help assist clients in analyzing risk from their global exposure to various entities, industries and regions. This service is also designed to help meet clients’ requirements for compliance under a variety of industry regulations such as Basel II, UCITS III, the EU Third Money Laundering Directive, MiFID, and the USA PATRIOT Act. The service complements an existing service for business entity data that Interactive Data launched in Europe in 2006.
The Business Entity Service can provide clients with comprehensive business entity information alongside Interactive Data’s broad range of security level reference data for U.S. and international equities and bonds, including corporate, government and agency securities. Specific client functions that may benefit from the service include compliance, risk, trading, research and database management processes.
By identifying a firm’s global exposure to a specific entity, industry or region, the Business Entity Service can help clients to obtain a more complete picture of the corporate hierarchy of an entity in order to better understand its capital structure and region-based risk exposure, as well as perform pre- and post-trade technical analysis. The service can also help identify the potential risks that could be triggered by corporate events affecting related entities from anywhere within the ‘family tree’ of the subject entity. In addition, it can help clients to comply with internal or client-imposed restrictions on exposure to an entity.
“Our clients expressed a growing need for comprehensive services that link the universe of affiliated entity securities to their issuers to help them with managing risk and meeting the requirements of industry regulations, particularly in times of market volatility,” said Robin Simpson, managing director of Reference Data for Interactive Data. “Our Business Entity Service, supported by our broad universe of reference data, can help our clients better understand an entity’s capital structure, as well as those of its affiliates.”
The Business Entity Service is designed for use with industry standard identifiers. Clients that utilize the service can receive the data through a range of Interactive Data’s delivery systems, including the Securities Information Retrieval Service (SIRSSM) and RemotePlusSM as well as the Company’s desktop service for clients. The service is expected to be available in the second quarter this year. The existing service provides wide asset class coverage and is available as an optional module of FTSSM, Interactive Data’s securities administration tool.