DTCC Connection

May 23, 2016 • DTCC Connection

Managing the Cost and Challenges of Legal Entity Data

By Pervez Janjua

Mark Davies, General Manager, Avox Data Services.
Mark Davies, General Manager, Avox Data Services.

Firms are facing increased business requirements and regulatory reporting pressure. This has led to a greater demand for legal entity data. The task of sourcing and maintaining legal entity data has become too large, costly and complex for financial markets firms to manage in house.

Mark Davies, General Manager, Avox Data Services, discusses how Avox helps clients to manage the burden of cost and ongoing maintenance of legal entity data.

DTCC Connection: What are some of the challenges with sourcing and legal entity data?

Mark Davies: Our clients are looking to execute on their data governance policies, achieve complete, accurate and timely supply of information to support their business decision making, help with regulatory reporting and enable straight-through processing (STP). So there are many challenges to tackle.

Underpinning all of this is the need to maintain core information on a growing list of industry participants, namely corporate hierarchies, industry sectors and location data. This simple list of data is the foundation that gives firms an ongoing understanding of their global risk exposure for each of their counterparts.

DTCC Connection: How does Avox help clients drive down cost?

Davies: Avox helps firms bring down the burden of cost by maintaining legal entity data. All clients face the same challenges of how to source and maintain good information on companies. For a number of reasons, it’s important for firms to keep that process moving and for most of our clients it’s really become a volume issue. Avox can help by delivering the content directly to organizations through real-time web services, enabling internal efficiencies to be realized through STP.

We support additional regulatory reporting needs through modular services including Foreign Account Tax Compliance Act (FATCA), Dodd-Frank, European Market Infrastructure Regulation (EMIR) and Financial Conduct Authority (FCA) Transaction Reporting. These services deliver specific classifications & exclusions as well as ongoing maintenance and updates to identifiers such as legal entity identifiers (LEIs) or Global Intermediary Identification Numbers (GIINS).

Avox employs an experienced in-house research team of analysts that research using reliable sources of entity data such as government, regulatory filings, stock exchanges and accredited business registries. More than 320 analysts work in the Avox Wrexham operations ‘Centre of Excellence’ and together they speak 27 languages.

DTCC Connection: Does Avox integrate with other DTCC assets?

Davies: Yes. DTCC’s goal is to provide a one stop solution for the management of entity data and documents through the client lifecycle. The Avox database of 2 million validated legal entities is the foundation for Clarient Entity Hub, a utility-based service designed to simplify client data and document management. Avox serves as the data provider for the Clarient Public KYC Service and the GMEI Utility, by delivering through a single entry point, with all data mapped to Avox’s single identifier (AVID). Avox is also working to map Omgeo ALERT Access Codes to the AVID. This integration allows firms to increase straight-through processing, improve data quality and reduce operational costs.

Want to find out more?

DTCC recently sponsored and attended the Data Management Summit (DMS) from A-Team Group in London. The event brought together Chief Data Officers, Head of Data Governance and other data professionals from banks, brokers and buy side firms. In a video interview conducted at the DMS, Davies discusses how Avox helps firms drive down cost and manage the ongoing maintenance of legal entity data.

Watch Davies' interview at DMS: https://goo.gl/x0Snct

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