Trading Technology

12:55 PM
Tim Lind, Senior Vice President of Product Strategy, GoldenSource
Tim Lind, Senior Vice President of Product Strategy, GoldenSource
Connect Directly

Counterparty Data Challenge

For the financial services industry, risk and compliance always have been an inherent part of doing business.

Golden Imperative

This is complex where financial institutions maintain different databases for reference, customer and counterparty data, sometimes across different business lines, products and regions. It is not uncommon to have more than a dozen different databases storing either reference, customer or counterparty data in incompatible formats. Therein lies the compelling imperative for cleansing, consolidating and enriching this data to create a single data repository containing a "golden copy."

For example, identifying a company's relationship to sister corporations under the same parent name may be ambiguous. Data from various sources may list the business and legal names in different ways. Such discrepancies create headaches for a firm's compliance department, which must ensure that all data relating to a counterparty and its associations is correctly identified and not linked to a criminal activity watch list or at risk of default on the terms of the transaction. Ignorance and poor data governance is no excuse with today's regulators, who are empowered to levy hefty penalties for compliance violations, or require risk-weighted capital be set aside to offset insufficient operational controls.

3 of 5
Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
Register for Wall Street & Technology Newsletters
White Papers
Current Issue
Wall Street & Technology - Elite 8
The in-depth profiles of this year's Elite 8 honorees focus on leadership, talent recruitment, big data, analytics, mobile, and more.
Exclusive: Inside the GETCO Execution Services Trading Floor
Exclusive: Inside the GETCO Execution Services Trading Floor
Advanced Trading takes you on an exclusive tour of the New York trading floor of GETCO Execution Services, the solutions arm of GETCO.