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Audit Chain is Broken Front-To-Back, not Asset-to-Asset, Says GoldenSource
NEW YORK, June 10 /PRNewswire/ -- A major hurdle to achieving a consistent view of pricing, positions and
exposure lays in the divide between market data feeds and reference data
repositories, according to GoldenSource, a global software provider of
enterprise data management (EDM) solutions.
Pricing mechanisms in the front office and valuations for P&L in the back
office often depend on the same price and rate data, yet both areas derive
this information from disparate sources. According to research* from
consultancy A-Team Group, 87 percent of risk managers are interested in
centralizing market and reference data, namely to address the following:
- Volatility - unprecedented market movements are impacting portfolios,
customers, counterparties and issuers faster than ever; back-office
risk and P&L systems can no longer wait until end-of-day to access
critical market data
- Accuracy and consistency - because of the similarity, regulators are
expecting much of the same data used in the trading decision process
to be extended to valuation, P&L and risk management
- Multi-source validation for middle- and back-office valuation -
regulatory and client demands for insight into how a value was derived
means that golden copy pricing needs to extend beyond static reference
sets and include multiple market data sources
- Elimination of asset-based silos: siloed desks have traditionally been
blamed for the inability to get a complete view of risk and exposure;
these silos are now being broken down, yet the divide between market
and reference data persists
"By definition, enterprise risk management and reporting should go
front-to-back as well as across assets," says Gert Raeves, VP of Strategic
Business Development at GoldenSource. "A trusted data environment for
interdependent front- and back-office processes now relies on the
centralization of market and reference data. With market data, there is a
convergence point where a snapshot of the market can be captured and
validated for downstream applications."
To arrange an interview with GoldenSource for further insight on the
convergence of market and reference data, please contact Sheryl Lee or Daniel
Diaz at Metia: sheryl.lee@metia.com/daniel.diaz@metia.com
For more information on GoldenSource, please visit
http://www.thegoldensource.com/
* "Risk Management Drives Cross-Enterprise Data Connections", January
2009
