Donna Milrod, Managing Director and Head of DTCC Solutions
When the Aite Group published a study that found 82 percent of firms cited regulation as the driving force behind the need to invest in and improve legal entity data management, it didn’t come as a major surprise to Donna Milrod, Managing Director and Head of DTCC Solutions. Milrod heard this same message in client meetings throughout the U.S., Europe and Asia. And she was being asked by them how DTCC could help them manage this enormous volume of data in a more cost-effective way.
“It was very clear to us that a utility model would provide the industry with a single solution to address inefficient and costly client data management challenges associated with the current fragmented and decentralized processes employed by most firms,” she said. “A utility would enable a firm to collect data and documents from its clients once, standardize and centralize them in one place, update them regularly and make them available to multiple parties, in a secure, permissioned environment. Not only is this more efficient for the industry, but it would improve data quality and drive down operational costs as the community grows.”
Turning this vision into reality requires DTCC to bring together its global entity data assets in order to build out a suite of services that will transform how client data is managed. This work actually began several years ago as DTCC strategically mapped together four separate businesses as the building blocks in the establishment of a holistic client data management business. While each business on its own has a proven record of success in its respective area of expertise, the synergies of bringing them together into a single platform has the potential to be transformational for the industry.
At the center of the utility is Clarient™, a centralized platform facilitating the exchange of private and public data and documents to help manage client data for client onboarding, Know Your Customer (KYC), trading and regulatory reporting enrichment. Connected to Clarient™ is Avox Data Services®, a global industry leader in legal entity reference data, Omgeo ALERT®, an online global database that maintains and communicates account and standing settlement instructions, and Global Markets Entity Identifier (GMEI), a utility providing a seamless process for acquiring a legal entity identifier. DTCC’s Counterparty Reference Data and Enrichment (CRDE) service, a solution that collates and disseminates the proprietary counterparty data required for EMIR reporting, will also be integrated into the combined services.
While it will take time to bring the pieces fully together, Milrod is excited by what the future holds. “As a combined offering, the value proposition is powerful,” she said. “A single utilitized platform designed to address various challenges throughout the legal entity data lifecycle will enable firms to get their new clients eligible and ready to trade and settle as quickly and efficiently as possible.”
She continued to explain that clients will realize additional value and efficiencies to downstream trade and collateral management processes where accurate and standardized client data is critical to reducing process exceptions and increasing straight-through processing. “We believe we are at the beginning of an exciting journey and have just started to tap the enormous potential of this solution,” she said.
(Source: DTCC Annual Report 2015)