The paper highlights the benefits of moving to a more centralised data strategy, including cost reduction, risk reduction, and the ability to better use data to drive value.
Industry initiatives such as the FIX Protocol and the introduction of LEIs show that standardised approaches to data governance can be effective in controlling the risks associated with sourcing, storing, processing, transmitting, selling and using data.
Different industry initiatives such as the Financial Information eXchange (FIX) Protocol and Legal Entity Identifiers (LEIs) have been successful in standardising the way in which financial data is transferred and counterparties and clients referenced from one system to another reducing risks arising from the data being ‘lost in translation’. But more is needed to manage the risks arising from the ever-increasing role of data in financial markets.
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