DTCC Connection

May 26, 2016 • DTCC Connection

Gaining a Strategic View Into Client Reference Data

DTCC Presents a Video Roundtable in Partnership with Global Custodian

Bill Meenaghan, Executive Director, DTCC
Bill Meenaghan, Executive Director, DTCC

Doing more with less, reducing risk and increasing efficiencies are top of mind for reference data professionals on both the buyside and sellside.

They face significant challenges with data silos, legacy systems and lack of industry standardization. With an Increase in business requirements and regulatory reporting pressures, firms have less time to focus on their core business.

In partnership with Global Custodian, The Depository Trust & Clearing Corporation’s (DTCC) Omgeo ALERT® has sponsored a video roundtable with industry speakers to look at these questions: 1)  How is client reference data changing; 2) What are the industry challenges?; 3) Who is responsible for this data?; and 4) How are participants collaborating to transform the market?

RELATED: The Evolution of Omgeo ALERT

Alexandra de Luca, Contributing Editor at Global Custodian, poses these questions to a panel of expert speakers in this 60-minute video discussion. The panel features Bill Meenaghan, Executive Director, DTCC; Louis Rosato, Director, Investment Operations, BlackRock; Todd Sullivan, Managing Director, Morgan Stanley and Dick Taggart, Executive Vice President, State Street.

The first chapter, Client Reference Data – A View from the Top, looks at the Legal Entity Identifier (LEI) concept and the challenges it brings with global regulatory requirements. The panel discussed that firms are struggling to keep up with the demands of these regulatory reporting requirements, and with a lack of standardization, it’s proving difficult to focus on their core business. For legacy reasons, the firms’ functions are working across multiple data silos that only produce more resources and higher operational costs.

RELATED: An Inside Perspective on the Growth of LEIs

The second chapter, Client Reference Data – how do we tackle the issues?, explores how the industry can resolve these issues and who is responsible for this client reference data. The panel agreed that by bringing together standard processes and common formats, this will encourage innovation to existing business processes and ultimately commercial cost savings. A suggestion toward a shared industry utility was recommended.

In the third chapter, Client Reference Data – how are we collaborating?, the panel explains that it’s the responsibility of all participants – the buyside and sellside and custodians – to develop a risk management plan. This strategy lays the foundation for working together in a shared utility and defining the future ‘golden source’ data requirements. It makes sense to share non-proprietary data and standardize client reference data. If not, then it could be the tech firms in Silicon Valley that implement this and potentially take over and bring about this much needed change.

To watch the full videos, visit DTCC You Tube channel here https://goo.gl/AvJsdi.

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