DTCC Connection

Oct 05, 2015 • DTCC Connection

Avox Product Roadmap Addresses Clients’ Needs

Avox Product Roadmap Addresses Clients NeedsAvox, a DTCC company, has released a number of product enhancements this year designed to provide clients with faster and easier access to data.

As we enter the last quarter of 2015, here is a preview of Avox’s product enhancement pipeline for the remainder of this year.

Enhanced Web Services

A series of web-based application programming interfaces (APIs) were launched earlier this year to provide clients with faster access – within seconds – to legal entity data.

High standards in data accuracy, completeness and timeliness are critical needs for clients. Bringing faster access to legal entity data—including legal entity identifiers (LEIs), legal names, addresses, industry classifications and corporate hierarchies—is vital in helping clients to achieve straight-through-processing (STP) in the sourcing and ongoing maintenance of this data.

The first phase of the web-based functionality included the ability to search, subscribe and request re-validation. The next phase set for testing later this year will introduce “message queues,” which will allow Avox to push data out to subscribers.

Benchmark Transparency Service

To enhance efficiency and reduce risk, financial firms across the globe are seeking to increase levels of automation in data processing. Avox is developing a benchmark transparency service designed to assign a “confidence ranking” to each of the more than 1,000 information sources Avox uses to build and maintain its entity data records. The service aims to provide clients with an STP solution, enabling them to increase the volume of Avox data they can consume into their internal workflows without additional manual effort. When used in conjunction with Avox APIs, this functionality will offer an unparalleled level of automation in entity data processing. Testing of the service will begin at the end of the year.

Linking Avox and Omgeo ALERT

In response to client demand, Avox and Omgeo (both DTCC companies) have partnered to link fund account level information including standing settlement instructions contained in the ALERT database back to the underlying legal entity and up the ownership chain.

At its simplest level, this involves the mapping of ALERT access codes (fund level identifiers) and Investment Manager acronyms to their respective Avox IDs, or AVIDs, at the legal entity level.

Avox has nearly completed mapping all of the ALERT acronyms (Investment Manager identifiers) to their respective AVID, a unique identifier that Avox assigns to each business entity it validates for its clients. The mapping process has also started for linking ALERT access codes to the respective AVIDs. Over 85,000 access codes have been completed.

Avox is currently validating a proposed product design with clients in Europe and the U.S., and the linkages are expected to go live in the fourth quarter.

Addressing the Challenges of MiFID II

Avox is in the process of analyzing the impacts of MiFID II will have on entity data requirements. The two Regulatory Technical Standards (RTS) identified thus far are:

  • RTS 32: Reporting Obligations under Article 26 of MiFIR
  • RTS 33: Obligation to supply financial information reference data.

Avox will be undertaking further research to identify specific requirements and scope out the proposed service offering, well in advance of the implementation date of January 2017.

An Introduction to Avox

Avox, a wholly owned subsidiary of The Depository Trust & Clearing Corporation (DTCC), matches, enriches and maintains legal entity reference data for its clients, delivering corporate hierarchies, registered address information, industry sector codes and company identifiers. This ensures that clients can rely on the most accurate and timely data available to facilitate decision making and regulatory reporting.

Avox’s Managed Data Service (MDS) supports the management (matching, enriching and maintaining) of 58 data fields which make up a ‘core’ entity record including, but not limited to name, addresses, identifiers, industry classifications, corporate hierarchies, regulatory status, legal entity identifier. Clients subscribe to this service on an ‘entity of interest’ basis.

The Enhanced Data Service (EDS) comprises modular based offerings to support clients’ regulatory reporting requirements. Each module is made up of data items that are identified as information needed for individual regulations, including the Dodd-Frank Act, Financial Conduct Authority (FCA) Transaction Reporting, European Market Infrastructure Reporting (EMIR), Foreign Account Tax Compliance Act (FATCA), among others.

Avox employs an experienced research team that searches for new, reliable sources of entity data, focusing on government, regulatory, stock exchange and accredited business registry sources. More than 320 multi-lingual research analysts work in Avox’s Wrexham office. Over 1,000 public authoritative sources are used to verify entity data to create a validated record with between four and five sources used for each validation. All research is subject to a robust quality control process including independently verifying each validated record by a second analyst and then a further 15% sample is checked again.

Learn more about Avox at www.avox.info

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