Data Management: Picking Up the Pieces from Systemic Failure

Good market data management and governance is absolutely critical to effective asset management. It’s little surprise, therefore, that institutional investors and investment managers spend a great deal of time, effort and money scoping and implementing the best fit approach for their organizations.

Many firms put premium on customization, as only highly customized data services are suitable for serving bespoke and finely tuned investment products and operational practices. The requirement for customization combines with a desire for control to lead many companies to decide to run their own data management systems.

This can be a costly enterprise. First, firms must invest in expensive systems such as reference data management systems, data warehouses and ETL (Extract Transform Load) tools and hubs. Second, firms need to invest in large in-house management teams to apply validation, quality, and governance checks on the data they source from vendors. Without this investment, data management tasks are effectively dispersed across the business to front-line staff such as portfolio managers or risk analysts – employees who have much better uses for their time.

Remy Steinfink, Sales Manager at RIMES commented: “The high level of investment needed for such systems exposes firms to risk. What happens if, after spending all this money, your installed data management capability fails to deliver as promised? Time and again we have seen cases of firms relying on on-premise systems struggle to realize their ambitions.

“This leaves them in a precarious position – do you roll the dice again on another data management system that may or may not deliver, or do you cut your losses and stick with your expensive and inefficient status quo? Thankfully there is a third option that allows firms to implement a new data management capability with little or no risk or upheaval – the managed service approach.”

Managed data services, such as those provided by RIMES, enable firms to run small, light-touch proof of concepts before implementing at scale. This approach allows firms to see in advance whether the proposed data management system will deliver against their needs.

Moreover, managed data services draw on economies of scale to lower the total cost of ownership. Firms wary of the expensive installed database approach instead benefit from a data management model that comes at a lower total cost of ownership. Importantly, it does do without sacrificing the customization and control required by firms.

One of the leading global investment managers recently experienced this at first hand. Having contracted with a data distributor for the provision of an installed database, the firm found the system was plagued by outages and delivered poor quality data outputs. After two years of battling with the system the company turned to RIMES for help. RIMES’ initial test feeds outperformed anything the installed database had managed to produce, and the firm signed up to the full service.

RIMES is now set to deliver a full, centralized feed service comprising best-of-breed benchmark data for use in the firm’s attribution & performance, compliance and company reporting systems. Read more here.

RIMES Managed Data Services is a proven data operating platform that helps firms of all sizes and in all regions align their data consumption closely with business needs. Contact us to learn more.

The content provided in these articles is intended solely for general information purposes, and is provided with the understanding that the authors and publishers are not herein engaged in rendering regulatory or other professional advice or services. Consequently, any use of this information should be done only in consultation with qualified legal counsel. The information in these articles was posted with reasonable care and attention. However, it is possible that some information in these articles is incomplete, incorrect, or inapplicable to particular circumstances or conditions. We do not accept liability for direct or indirect losses resulting from using, relying or acting upon information in these articles.

Posts by Topics