Over the last years, investment management firms have understood that data is a key asset and have consequently placed an increasing focus on managing it effectively.
Now investment firms are investing massively in systems/solutions and increase the focus on data governance, resulting in higher human capital costs for data management functions.
The true cost of market data, beyond license fees, can be significant.
Cost of people managing market data, including acquisition, scrubbing, validation, and reconciliation from all groups within the organization:
Data Management: work related to creating and cleansing market and reference data, identifying and resolving data issues, data quality reporting, and other tasks related to data quality management and data governance
Information Technology: implementing / maintaining data management systems, resolving market and reference data issues, loading data into repositories
Operations: work related to creating and cleansing market and reference data, and to identifying and resolving data issues
Portfolio Management: acquisition and cleansing of market and reference data for the front office
Risk Management: acquisition and cleansing of market and reference data for risk analysis functions
Performance Measurement and Attribution: cleansing and remediation of data for performance analysis
Marketing: managing market data for pitch book creation, collateral, and consultant RFPs
Client Reporting: acquisition and cleansing of market and reference data for client reports
Cost of data management systems apportioned to market data management
Reference data management systems, Extract, transform, and load (ETL) tools, Data hubs, Data warehouses, Tools for aggregating and distributing market data, Tools for administering market data and tracking usage, Cost of other investment systems, apportioned to market data management, Order management / portfolio management, Accounting Performance and analytics, Client reporting, Risk management…
Expenses incurred on investment administration service providers apportioned to market data management
Middle office service providers, Back office service providers, Custodians, Non-traditional data service providers, Other service providers…
NeoXam DataHub provides a set of functional modules which answer to the specific requirements of financial institutions such as investment and retail banks, asset managers, brokers, custodians or fund administrators.
Consolidation and centralization of a securities master file fed from different sources, improved management of business entities (counterparties, issuers), the creation of a unique customer master file, integration of all trades and positions in a unique repository for better risk and compliance monitoring are only a sample of the issues that NeoXam DataHub is able to address
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*Source:Cutter Associates
