Open any business publication and it won’t be long before you find an article highlighting the importance of data to modern enterprises. From enabling new business models to uncovering operational insights, data is seen as an increasingly critical differentiator that can make all the difference between success and failure.
The financial sector has historically been at the forefront of data-driven disruption. High frequency trading and algorithmic trading are now commonplace, while traders are increasingly looking to big data analytics to find alpha. But as applications of data have increased, so too have data volumes. There’s now more market data than ever, and from a broader and growing number of data providers.
As Andrew Barnett, Global Head of Product Strategy at RIMES, points out: “what we’re seeing is that data governance, in its widest sense, has become a critical part of a business’ competitive differentiation. Firms that are best able to source, validate, master and distribute the data their business users need will be able to outpace competitors and answer regulatory demands. But this isn’t as easy as it sounds. Many firms still lack the cost-effective scale and governance needed to build a robust data foundation for their organization.”
With so many data providers out there, firms can find themselves with a commercial, technical and operational overhead that’s often not considered when the direct sourcing approach was originally taken. Trying to manage different file formats and multiple relationships makes data ingestion and quality control a resource-heavy nightmare – one that can slow down operations. On the other hand, asking business users to source and manage their own data is equally inefficient as the firm can easily lose oversight over what data it has and hasn’t received, who owns this data and where the data can be used. This can result in the firm buying the same sets of data several times on one hand, or breaching licensing terms on the other.
Establishing a centralized data governance framework overcomes these challenges and unlocks the full value of market data. Centralized oversight ensures consistent and transparent data processes, which in turn helps with audit integrity. More importantly, it creates one source of truth for business users with fully vetted data that’s ready for use. Centralization of data governance also reduces costs by removing duplication of effort and ensuring data is only paid for once.
Recently, RIMES helped a large US public pension fund transform its data governance model. Through RIMES’ elastic Managed Data Services, the fund was able to overcome its data aggregation and standardization challenges. RIMES provides a single point from which the firm can review its benchmark and index licences, benchmarks history and delivery status. With RIMES, the fund will achieve a fully auditable data trail, giving it complete confidence that it is operating within the terms of its licences and agreements. 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 and react to unforeseen data events. Contact us to learn more.
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