Ensuring Accuracy and Timeliness in Benchmark Blends: The Role of APIs and Automation
March 31, 2023
See how our Blend API helps asset managers improve data accuracy and enhance operational efficiency.
We live in the era of digital transformation and data-driven workflow, yet in some areas, asset management firms continue to be hamstrung by time-consuming manual processes that act as a drag on productivity and increase operational risk. Benchmark blends are a case in point.
The manual data management and analysis that many firms apply to their blends are error-prone, unacceptably slow, and can lead to benchmarks being weighted inaccurately. That's why application programming interfaces (APIs) are increasingly being leveraged to support automation, specifically for blends that drift and may need rebalancing if their weights exceed the IMA’s tolerance or target range.
What is an API?
Application Programming Interfaces (APIs) are a set of protocols, routines, and tools for building software applications. APIs define how software components interact with each other and enable communications between different software systems.
An API acts as an intermediary between different software applications, enabling them to exchange information and perform specific functions. For example, social media apps on smartphones often use APIs to connect to a server that provides data such as newsfeeds and notifications.
APIs are used for a wide range of purposes, such as sharing data between different applications, automating repetitive tasks, integrating third-party software, or enabling developers to create new applications using existing services.
APIs allow for seamless integration between different software systems, enabling data to be shared and utilized more efficiently. This improves efficiency, reduces costs, and saves time. APIs can also improve the user experience by providing access to more features and functionalities. Finally, APIs can increase revenue opportunities by enabling businesses to offer their services to a wider audience.
How can APIs Improve Blend Management?
Index blend management services help achieve timely and high-quality blends with a range of weighting methodologies and constituent aggregation options. With an API-based approach, asset managers can seamlessly create, read, update, and delete blends leveraging automated workflows. The approach dramatically reduces operational risk and the costs associated with manual alternatives.
The Rimes Extended Blend API is a case in point, providing firms with an automated solution to managing blend index data. With Rimes' Extended Blend API, firms can now manage daily weight and component changes across multi-asset blends with ease. Here are just some of the capabilities that our API offers:
- Improved Self-Service: Access blend index data in real-time and make changes as necessary. This self-service approach enables firms to manage their blend index data more efficiently and effectively, reducing operational risk and improving the accuracy of blend index data.
- Reduced Costs: Cut the costs associated with manual processes – including the need for additional personnel to manage blend index data – by automating workflows.
- Increased Efficiency: Reduce the risk of errors by eliminating the manual processes. This can help asset managers achieve greater efficiency in managing blend index data, freeing up resources that can be used to focus on core business activities.
- Enhanced Flexibility: Respond more quickly to market changes and adjust blend index data as necessary in real time. This can help firms stay competitive in a rapidly changing market environment.
- Improved Data Accuracy: Maintain the accuracy of blend index data, reducing the risk of errors and ensuring that blend index data is up-to-date with look-through data on components' weights and dates, and the ability to edit future and historic weights for existing blends and components.
- Get All Blends: Surface a list of blends created through the API to keep track of blends and their respective compositions.
- Get a Blend (All Compositions): Surface all the compositions of a specific blend to view the constituents of a blend and their respective weights.
- Get a Specific Blend Composition: Surface the composition of a specific blend for a given date to view the constituents of a blend and their respective weights at a specific point in time.
- Update Existing Blend Component Weights and Dates: Update the weights and dates of existing blend components for both future and historic dates to manage the weights of blend constituents in a granular manner.
- Request Drifted Blend Weights for a Given Date: Request the drifted weights of blend constituents for a given date to manage blend weights more accurately and effectively.
Automated Blend Management for the Digital Age
Rimes' Extended Blend API is a powerful tool for asset management professionals looking to automate their blend index data management workflows. By leveraging the Blend API, firms can reduce operational risk and costs associated with manual workflows, increase efficiency, enhance flexibility, and improve data accuracy.
Please contact your Rimes Account Manager today to learn more about how the Blend API can help you manage your blend index data more efficiently and effectively.