Brussels and London, 22 October 2012 – Euroclear Bank and SmartStream today signed an agreement to provide the first centralised reference data utility service. Known as the Central Data Utility (CDU), the Euroclear Bank service will source securities data from data vendors as well as from data originators, such as central securities depositories and stock exchanges. Powered by SmartStream technology, securities data processed in the CDU will first be validated, cleansed of inaccuracies and then enriched before being relayed to clients in the precise format that the client has chosen, on an intra-day basis.
By pooling extensive data management expertise, SmartStream and Euroclear Bank will be delivering meaningful client back-office savings twinned with the highest possible level of securities information accuracy. Initially starting with Eurobond data and subsequently expanding to other asset types from a broad geographic scope of markets, this new service is unique in that it is available to market participants in the form of a centralised utility. CDU clients can benefit from a centralised and simplified process to access cleansed data from their chosen data vendors.
Yves Poullet, Chief Executive Officer, Euroclear Bank, said: “Capital market firms attribute 35-40% of all trade breaks they experience to avoidable mismatches in reference data. Through our unique partnership with SmartStream, we aim to drastically reduce the number of mismatches by providing the highest quality of data accuracy, including the use of in-house information and a comprehensive network of other data providers. Firms no longer need to bear the enormous costs and risks of scrubbing securities information themselves. Estimates put back-office client savings at EUR 20 million per year and more for those high-volume consumers of securities data that choose to receive refined data from the Central Data Utility.”
“We are very proud we could help bring this revolutionary data utility to market,” said Philippe Chambadal, Chief Executive Officer, SmartStream. “The financial services market has never seen a bank-owned utility tackle data issues in this way; it literally transforms the way this information is managed.” Chambadal continued: “This service will not only offer best-of-breed data sourcing, but will provide a common platform which will incrementally drive up data quality as more clients participate in the service.”
This partnership makes perfect business sense and draws on the unique capabilities of the two different, but complementary, companies. Euroclear Bank, as a user-owned capital market service provider, operates proven post-trade infrastructure. It collects information directly from issuing agents and acts as the national numbering authority for over 200,000 Eurobonds. SmartStream is a market leading middle- and back-office solution provider with deep domain experience in developing solutions that drive down transaction processing costs. It aids in the management of regulatory burdens, provides robust operations infrastructure and improves operational transparency.