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About the SmartStream Reference Data Utility

Financial institutions are critically dependent on high quality reference data to ensure that they can successfully trade electronically, automate their operations and report accurately to regulators. Large institutions spend millions of dollars to improve data quality, fix data issues and manage the exceptions that occur due to bad data.

The SmartStream Reference Data Utility (RDU) offers a simple solution to satisfy those complex reference data needs, by providing a high quality security master built using industry best practises. The RDU is the product of an initiative developed in close association with demanding global institutions and has been proven to deliver dramatically better quality data at lower cost.

The SmartStream RDU takes data quality seriously. In fact, we dedicate enormous effort making sure the data that flows out of the RDU is of the highest quality possible. Whether data is from direct sources or from data vendors, all data goes through our PEARLS of Data Quality™ approach:

  • Persistence – Design validation rules to capture issues throughout the lifetime of each record, starting with acquisition and ending only when the record is inactivated
  • Early Detection – Fix data when loading, or as close to loading as possible, eliminating the need to capture errors downstream or as the data is distributed
  • Automation – Automate the correction of as many quality rules as possible to eliminate additional manual errors
  • Review – Re-examine, continuously, any quality rules that are developed to ensure they continue to remain valid
  • Listen – Monitor trends of data issues to catch hidden issues
  • Skills – Use skilled and experienced analysts with subject matter expertise to review both the data content and the mapping rules

At every stage of the process, from design and mapping to acquisition and distribution, our focus is on producing high quality data without the resource and budget restraints faced by many financial firms. Ensuring the quality of the reference data you need to run your business is our business.

Reduction in exceptions
70- 0 %

reduction in exceptions

Annual savings

$ 0 m+

for Tier 1 Bank

Security Reference Data

Security Reference Data

Build your business on a strong foundation by sourcing high quality reference data to drive your customers' experience, your trading effectiveness and your operational efficiency.
  • Customers increasingly trade everything electronically and expect perfect execution – trade breaks damage your reputation
  • Trading algorithms, risk models and regulatory reports all demand high levels of accuracy from the start of the trading day – otherwise garbage in equals garbage out
  • Automated clearing and settlement processes can generate 10,000s of exceptions – all requiring manual intervention

Financial institutions spend millions of dollars to ensure data is good enough, to manage trade breaks and to handle manual exceptions, fixing issues after the event. Better to avoid issues by using the RDU – a simple solution to your complex security reference data needs.

The RDU transforms this landscape by delivering complete, accurate and timely securities reference data to you before the start of the trading day. This high quality security master is provided as a 24 * 7 managed service, built in collaboration with demanding global banks and is maintained to the highest quality standards as a by a team of reference data experts using a sophisticated data management platform.

The RDU offers the following security master coverage:

  • The best Futures and Options reference data on the market sourced from 100+ exchanges with extensive attribute coverage at both product and contract level; fully cross-referenced with all key market identifiers; fully maintained underliers and demonstrably better data quality
  • Vendor sourced Equities, fully cross-referenced with all key market identifiers and with corporate actions reliably applied by the start of the trading day
  • Vendor sourced Fixed Income, with the full cross-reference and corporate actions reliably applied will be available in early 2020

A growing range of regulatory reference data is also available.

The Capital Markets are data driven. The financial products that we trade are very rarely physical. They are defined by data, held in a database and traded by moving them from one database to another, transferring ownership electronically between individuals, firms and geographies. So, given how critically important it is to have precise definitions of the financial products that you are trading, why is it so hard to source and maintain a complete, accurate and timely set of security reference data to underpin your business?

Across the industry, financial institutions spend hundreds of millions of dollars sourcing, aggregating, validating, gap filling, correcting and maintaining securities reference data, often ineffectively and often manually. Every organisation does this. The duplication across the industry is horrendous.

The impact of poor quality data is even worse. In today’s highly automated businesses, with massive trading volumes, firms are constantly dealing with trading breaks, process exceptions and clearing / settlement issues. The investigations and the manual reprocessing are very costly, but the real impacts are the trading losses, the reputational damage and regulatory risk.

The SmartStream Reference Data Utility (RDU) transforms this landscape; delivering complete, accurate and timely securities reference data maintained to the highest quality standards using best practise processes built in collaboration with demanding global banks. The RDU combines a sophisticated data management platform with a 24*7 managed service staffed by reference data experts and delivers the data that you need to populate your security master before the start of the trading day. You no longer need to maintain fragile data loaders, complex aggregation rules or fluid data transformations. You no longer need to obsess about vendor or exchange feed change notifications. Let the RDU make the complex easy by sourcing, aggregating, quality checking and where necessary customising the data for you.

Transform your business today with complete, accurate and timely security master data from the RDU, the reference data specialists.

Why is it so hard to maintain a precise security master?

  • Data standards are not precise enough
  • Data originates from 1000’s of different sources, exchanges, issuers, bi-lateral counter-parties
  • Different identifiers are used across financial products
  • Attributes are represented differently
  • Classification schemes vary considerably
  • Different identifiers are used for market participants whether they are legal entities or individuals
  • Data is fluid with frequent new issues, contracts expiring and constant corporate actions
  • No single data source is good enough

The RDU offers:

  • The best Futures and Options reference data on the market sourced from 100+ exchanges with extensive attribute coverage at both product and contract level; fully cross-referenced with all key market identifiers; fully maintained underliers and demonstrably better data quality
  • Vendor sourced Equities, fully cross-referenced with all key market identifiers and with corporate actions reliably applied by the start of the trading day
  • Vendor sourced Fixed Income, with the full cross-reference and corporate actions reliably applied will be available in early 2020
  • A full MIFID II regulatory data set to support pre-trade price transparency, post-trade reporting and transaction reporting; normalised to an instrument level for easy integration into the trade workflow; full support for OTC Derivatives with intra-day APIs; full support for ToTV; ANNA integration and integrated counterparty role determination (e.g. Central Bank, SI, MIF)
  • The Systematic Internaliser Registry, a unique data set sourced from 110+ Systematic Internalisers (SIs) in collaboration with the APA community that offers a highly granular listing of the services that SIs offer
  • A Securities Financing Transaction Reporting (SFTR) enrichment service that makes it easy to reliably add the securities reference data needed for your transaction reports

The reference data for Exchange Traded (Listed) Derivatives is a particularly challenging data set to source correctly. The complexity of the instruments, the linkage to underlying products, the lack of standard identifiers and the fluid nature of the futures and options contracts mean that many financial institutions struggle with data quality. What is worse is that the standard sources for reference data, the established data vendors and the exchanges also struggle with the data quality for Listed Derivatives.

The RDU overcomes this challenge by sourcing the data direct from 100+ exchanges, supplementing the exchange data with a rich set of static data that defines how contracts trade, self-sourcing and applying corporate actions to the underlying products and cross-referencing to the key proprietary identifiers used in the market. The RDU maintains the data to the highest level of quality and delivers it in time for the start of the trading day.

The RDU offers the best Futures and Options reference data on the market:

  • Sourced from 100+ exchanges with comprehensive coverage for Options, Futures, Options on Futures and Calendar Spreads
  • Comprehensive attribute and static data coverage – sourcing more than 250 attributes that are critical to front office and back office processing
  • Monitoring of securities data for corporate actions and Holiday Calendars with updates applied prior to market open
  • A complete unambiguous cross-reference covering key market identifiers and underliers
  • A range of enrichment sources are available and can be added on demand significantly enhancing the exchange sources
  • An intuitive User Interface offers simple access to the universe of data and its lineage
  • A robust data quality program with thousands of business rules that programmatically validate the data and capture the best practise from our demanding customers. New customers bring new data quality checks and all customers benefit
  • 24 * 7 operations and customer support with queries handled directly by expert staff
  • Full handling of vendor and exchange feed change notifications, with changes applied promptly, minimising the impact and cost to you and your business
  • Easy integration into your security master with file based delivery customised to meet your needs
  • Easy integration directly in to your trade workflow with cloud based REST APIs
  • A range of custom services including Business Process Outsourcing is also available

Equities are probably the most actively traded asset class globally, electronically traded with highly automated clearing and settlement processes essential to handle the volume. The quality of market data is generally high, but the volumes and high degree of automation mean that data related issues are still very costly and since the margins on Equity trading are very thin, avoiding issues wherever possible is critical. Data issues typically result from late application of corporate actions, poorly applied corporate actions, wrongly identified securities / listings and differences of interpretation of attributes between vendors.

The RDU overcomes these challenges by providing you with a consistent view of reference data across your choice of data vendors; a normalised set of attributes, in addition to the raw vendor formats; and a complete and reliable cross reference of security / listing identifiers so that you and your customers can unambiguously identify the correct financial product to trade. The RDU also ensures that corporate actions are applied effectively by the start of the trading day.

The RDU offers a unique combination of vendor sourced data:

  • A single schema of normalized Equity reference data across multiple market data vendors
  • Both normalised and raw vendor data are available, allowing simple arbitration across sources and full vendor compatibility where necessary
  • A complete unambiguous cross-reference covering key market and vendor identifiers
  • A range of enrichment sources are available and can be added on demand significantly enhancing vendor sources
  • Monitoring of corporate actions and validation to ensure that the corporate actions have been correctly applied to the reference data by the start of the trading day
  • An intuitive User Interface offers simple access to the universe of data and its lineage
  • A robust data quality program with automated exceptions management allows our operations team to ensure data is processed correctly, apply manual corrections where necessary and work with the vendor to correct the data at source
  • 24 * 7 operations and customer support ensures that all queries and exceptions are handled promptly by expert staff
  • Full handling of vendor and exchange feed change notifications, with changes applied promptly, minimising the impact and cost to you and your business
  • Easy integration into your security master with file based delivery customised to meet your needs
  • Easy integration directly in to your trade workflow with cloud based REST APIs
  • A range of custom services including Business Process Outsourcing (BPO) is also available

Transform your business today with complete, accurate and timely security master data from the RDU - The reference data specialists

Regulatory Services

Regulatory Services

There has been a particular focus on trade and transaction reporting over the last few years with Europe being the center of attention due to the broad scope of EMIR, MIFIR / MIFID II and SFTR. Reliable trade and transaction reporting depends on high quality instrument reference data and is a natural focus for the Reference Data Utility.

The RDU offers a complete set of reference data for your trade and transaction reporting requirements, normalized for easy integration. All of the instrument reference data that you need to meet your trade and transaction reporting obligations can be delivered either as data files for integration into your security master or through REST based APIs that offer simple trade by trade integration within your trading workflow.

The RDU offers:

  • Full support for MIFIR / MIFID II pre-trade price transparency, post-trade reporting and transaction reporting, across all asset classes, with all of the thresholds, liquidity flags, ToTV determinations and counterparty status that you need to accurately report. RDU removes the complexity of OTC Derivatives with full integration into ANNA DSB through a simple to use set of APIs
  • Complete clarity of the Systematic Internaliser services available across Europe down to individual security level
  • A Securities Financing Transaction Regulation (SFTR) service that makes it easy to enrich your SFTR trade reports with security / collateral quality, security type, CFI code and Issuer details that are required by the regulator

The RDU provides cost effective access to the securities reference data that you need whether your trading coverage is narrow and specialised or broad and all encompassing.

MiFID II is now a reality. The regulations are broadly in place with only a few milestones remaining and the new market structure is settling down. The rush to be ready has passed and for many financial institutions, the focus is now on reviewing their role and how compliant they have been since January 3rd 2018. The questions are wide-ranging:

  • Does it make sense for us to operate in the same markets? Have the economics changed?
  • Do we need to become a Systematic Internaliser (SI) in order to compete?
  • Will ESMA or the FCA mandate that we become an SI because of the volumes that we trade?
  • How will BREXIT impact my MIFID II implementation?
  • Is our MIFID II implementation sustainable and is it cost effective for the next 10 – 20 years?
  • Has our reporting been accurate? How would we stand up to scrutiny from the regulator?
  • Do we have the necessary control framework in place to make sure that our compliance is robust?

The RDU offers a complete set of reference data for all MiFID II requirements, normalized for easy integration. All of the data that you need to meet your pre-trade price transparency, post-trade reporting and transaction reporting obligations delivered either as data files for integration into your security master or through REST based APIs that offer simple trade by trade integration within your trading workflow.

The RDU offers a MIFID II reference data service for anyone that actively trades:

  • Full support for Approved Publication Arrangements (APAs), Systematic Internalisers and MIFID Investment Firms
  • All of the thresholds, flags, indicators and market volumes required for pre-trade price transparency, post-trade reporting and transaction reporting
  • Easy integration into your security master and your trade workflow with file based delivery or cloud based REST APIs
  • Comprehensive data coverage for all asset classes, normalized to an instrument level
  • Full support for OTC Derivatives, ToTV, uToTV, and ANNA DSB integration
  • Sourced from ESMA, GLEIF, ANNA and NCAs with enrichment from other sources
  • Integrated counterparty role determination (e.g. Central Bank, SI, MIFID Investment Firm)
  • A robust data quality program allows our operations team to ensure data is processed and enriched correctly
  • 24 * 7 operations and customer support ensures that all queries and exceptions are handled promptly by expert staff

The RDU provides independent access to the reference data that you need including daily history from the 3rd January 2018, making it a perfect source for your real time controls and your regulatory audits.

The SI Registry offers a comprehensive and granular set of data that brings clarity to the markets:

  • APAs and trading counterparties can reliably determine who should trade report
  • Counterparties can reliably populate transaction reports with the Buyer Identification Code and Venue
  • Buy-side firms can reduce regulatory complexity by ensuring that selected brokers offer the appropriate SI services
  • Systematic Internalisers can advertise their services
  • Buy-side firms can select brokers based on the services that are available in the market
  • Buy-side firms can identify the brokers that offer liquidity and best execution for OTC trades

The European Union (EU) Securities Financing Transaction Regulation (SFTR) aims to bring transparency to the securities financing markets by requiring both parties to an SFT to report new, modified or terminated SFTs to a registered trade repository. Each SFT trade report must include specific details about the security being traded and the Reference Data Utility simplifies the sourcing of the essential security reference data required to enrich each SFT report.

The RDU offers:

  • Full support for security / collateral quality, security type, maturity of the security, CFI code and issuer details for the security being reported
  • Easy integration into your security master and your trade workflow with file based delivery or cloud based REST APIs
  • Comprehensive data coverage for all asset classes, normalized to an instrument level
  • Sourced from ESMA, GLEIF and ANNA with enrichment from other sources
  • A robust data quality program allows our operations team to ensure data is processed and enriched correctly
  • 24 * 7 operations and customer support ensures that all queries and exceptions are handled promptly by expert staff

The Securities Financing Transactions Regulation is the European Union’s response to the Financial Stability Board
(FSB)’s policy proposals on securities lending and repos (repurchase agreements). These proposals followed a recognition that during the financial crisis, regulators and supervisors had difficulty anticipating risks in securities financing, due to a lack of data.

SFTs are transactions where securities are lent or borrowed in exchange for cash including a financing fee. This includes repurchase agreements (repos), securities lending activities, and sell/buy-back transactions. In each of these, ownership of the securities temporarily changes hands.

The SFTR regulation imposes conditions on the ‘reuse’ of financial instruments which have been provided as collateral; requires investment funds to disclose details of the use of SFTs to their investors; and requires both counterparties to an SFT to report the transaction to an ESMA registered Trade Repository.

What is the timeline for SFTR?
August 2013 – the FSB published its “Policy Framework for Addressing Shadow Banking Risks in Securities Lending and Repos”
January 2016 – EU Regulations (2015/2365) on SFTR came in to force
March 2017 – ESMA’s final report on technical standards for implementing SFTR was published
May 2019 – ESMA consulted on “Future Reporting Guidelines under SFTR”
Q3 2019 – ESMA is reviewing the feedback it receives to this consultation
Q4 2019 – ESMA expects to publish a final report on the Guidelines on Reporting under SFTR

Phased Go Live:
Tuesday 14 April 2020 – Reporting go-live for banks & investment firms
Monday 13 July 2020 – Reporting go-live for CCPs & CSDs
Monday 12 October 2020 – Reporting go-live for insurance firms, UCITs, AIFs, pension funds
Monday 11 January 2021 – Reporting go-live for nonfinancial entities

SFTR requires that both parties of a trade, report that transaction to a registered TR on a T + 1 basis although delegated reporting is permitted. Both transaction reports are required to match and the number of fields that need to be reconciled increase in a phased approach making it increasingly important to source accurate and clean data. The required transaction reports include 143 attributes of which about 10 are fields detailing the financial instrument that was traded, including an SFTR specific classification and a security quality indicator.

Let RDU make the complex easy, by sourcing, aggregating and quality checking the data for you

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