A recent Reuters, Capco and TowerGroup survey found that 37 per cent of financial institutions did not have a reference data strategy despite the impact of poorly managed data on their business. The survey found that over
30 per cent of financial trades fail due to incomplete or inaccurate reference data. In addition, 50 per cent of respondents said managing data was made increasingly difficult by the fact it was stored in ten or more different systems with only 4 per cent of data records updated automatically. These findings emphasise the critical role data management has to play in addressing the growing need to reduce risk, particularly in the current economic uncertainty and with the SIA June 2005 deadline to achieve T+1.
Reuters Reference Data Manager is an Application Service Provider (ASP) service, which assists financial institutions to improve the consistency of
their reference data, minimise the risk and high cost of failed trades. The
service analyses data held across different and geographically dispersed business systems and translates it into a common format. This creates a single view of the reference data used by the organisation enabling inaccuracies or incomplete items to be easily identified and amended.
The new service combines Reuters expertise in defining, managing and delivering data around the globe with Capco's expertise in developing STP solutions. It forms part of Reuters Data Management Solutions, designed to assist financial institutions by ensuring their data meets the requirements of STP and delivers cost and operational efficiencies. Reuters suite of services include DataScope, a comprehensive and rigorously updated source of reference data, and access to Reuters Consulting's data experts who specialise in helping institutions develop data management strategies and provide expertise on defining data and integrating applications.
Mark Sievewright, President & CEO of TowerGroup, commented "Data management is an issue that is gaining more and more importance in the industry due to the business requirement for true STP. It is something that affects all areas of the securities and investment sector, from how financial institutions manage their customers to how they manage their risk exposure. By failing to implement a clear data strategy, institutions are wide open to failed trades, undue risk, and the associated cost and inefficiency."
Cormac Kelly, Chief Executive Officer of Synetix, commented: "The recent research conducted by Reuters, Capco and TowerGroup confirmed that financial institutions consider reliable reference data as a key to achieving STP. Poor data management is costly to the financial services industry as a whole so it is now time to focus on the standardisation and accuracy of reference
data. Moreover, participants need to ensure the consistency of that data across their organisations, and throughout the lifecycle of their transactions. Reuters Reference Data Manager, powered by Capco will enable financial institutions to achieve an enterprise-wide view of their reference data, and facilitate an automated process to vastly improve data quality and consistency. This is the first in a range of services Reuters will deliver through Synetix, allowing clients to unlock efficiencies and achieve superior levels of real STP."
Anthony Kirby, Reuters Group Marketing Director responsible for STP, commented: " Financial services institutions are becoming increasingly aware that inconsistent and inefficient data increases operational risk and costs,
hinders service delivery and results in missed sales opportunities. Add to this the industry's focus on shorter settlement cycles, improving customer
service, and meeting regulatory requirements and a sound information management strategy becomes critical to corporate success. Reuters is a world leader in the management and delivery of information and we are committed to developing solutions which help our customers reap the benefits of increased automation and avoid the costs associated with failed trades."