New York/London, March 14, 2006 â Capco, the global provider of consulting, processing services and technology solutions to the financial services industry, today announced that it will enter into a seven year agreement with ING Group, whereby Capco Reference Data Services (CRDS), will acquire INGâs Security Master File (SMF) platform and will in turn provide ING with managed reference data services. The agreement represents a major milestone for CRDS and the global financial services industry. CRDS will be the first vendor to provide a managed securities and market reference data service and platform that covers all asset classes and all data types.
As a result of the agreement, ING will achieve immediate cost reductions and operational benefits.
âWe chose to work with CRDS as they are recognized for their deep industry expertise and capacity to deliver,â said Erik Dralans, Executive, ING Group. âClean reference data is critical to our operations, and we chose to entrust our data to CRDS because they have proven that they understand our business and have the skills to optimally manage reference data.â
CRDS will integrate INGâs proprietary, state-of-the-art reference data technology solution and extensive functional coverage within its existing platform. As a result, CRDS, which already provides high quality data sourcing, validation, cleansing, reconciliation and distribution services, will be the first provider to offer a full range of traded and OTC asset classes - fixed income, global equities, derivatives, money markets, and OTC instruments - and all data types, such as counterparty, legal entity hierarchy, descriptive data, pricing, and corporate actions.
With this arrangement, CRDS now has the ability to provide new and existing clients with security master technology (CRDS Container) that allows for easy integration between the client's applications that consume the data and CRDS services. Clients will be able to receive data into the centralized Container from where the data will be distributed to consuming applications utilizing messaging protocols, respond/request service oriented connectivity or through file extraction and transfer . The Container is based on ING's security master platform that has been designed to specifically address the data distribution requirements for downstream applications by allowing users to subscribe to those securities that are of interest, their selected attributes and their preferred data source. The Container will allow financial institutions to significantly reduce time and costs of implementing centralized reference data processing by eliminating the need to implement and integrate their own security masters.
âOur decision to take over and build on top of INGâs SMF platform,â said Predrag Dizdarevic, Executive Vice President of Capco and President of Capco Reference Data Services, âis based on SMFâs proven record as a centralized reference data solution, used across the whole ING group. Its unique distribution capacity and extremely rich multi-provider data model enables us to contemplate high volume one-to-many client service.â
ING joins 30 other top-tier global financial institutions as clients of CRDSâ managed reference and market data services. Among these clients is Morgan Stanley who has utilized various CRDS services for 10 years, which were initially provided by Iverson Financial Systems, Inc., prior to its acquisition by Capco in January, 2004. Morgan Stanley was a pioneer in the use of selective sourcing. Their decision to outsource part of its reference data management was based on achieving enhanced operational capabilities and efficiencies.
âING realizes, as do many of our other clients, that they no longer have to manage non-strategic processes and that they can outsource their enterprise-wide data management needs to Capco Reference Data Services,â said Predrag Dizdarevic.. âIt is the beginning of a new era in reference data management, and we are the first end-to-end reference and market data services provider. We offer a complete solution that helps clients achieve immediate cost savings and allows firms to focus on their business.â