Utility to provide capabilities to mutualize operations and technology cost
Goldman Sachs, JPMorgan Chase and Morgan Stanley today announced they have joined with SmartStream to create a new Reference Data Utility. The SmartStream Reference Data Utility, informally known as Securities Product Reference Data (SPReD), will provide services for instrument reference data normalization and validation across all asset classes. The founding banks will also become clients of the utility.
The service will provide clients with a multi-tenanted, auditable environment for data collection, cleansing, and change management based on customized integration standards to generate a flexible, bespoke security master database. Leveraging common market processes, incorporating best practices and individual controls, consumers of instrument data across capital markets will benefit from savings and operations improvements as clients of the utility.
“The new Reference Data Utility is at the forefront of what really is an evolution in the industry with the achievement of processing mutualization, the reduction in operational risk and an increase in service quality within the reference data management domain,” stated Philippe Chambadal, CEO of SmartStream. “Our three bank members have embraced the utility model to ensure that the duplication of effort is minimized when addressing common market issues such as inconsistent data in regulatory reporting, costly trade breaks, and risk management.”
The Reference Data Utility will utilize SmartStream’s proven, market-leading data management service; with 5 years of production experience, it is currently the only solution to offer multi-tenant architecture, full auditing capabilities, complete market coverage, timeliness of delivery, and customer-defined sourcing proposition.
“We are pleased to partner with SmartStream and our industry peers on an innovative product that combines emerging technology with a common utility model,” said Julie Harris, Managing Director and head of Operations Data Quality Management at Goldman Sachs. “We believe this solution presents great value for our organization and the broader industry.”
“This is a great example of how our industry can partner to improve effectiveness and reduce costs,” said James Trait, Managing Director at JPMorgan Chase. “This utility will greatly improve the quality, timeliness and consistency of reference data used across our firm to better serve our clients.”
“With the growing challenges around regulation, risk management and product diversity, working together to ensure high-quality reference data is in everyone's best interest,” stated Eric Suss, Managing Director and head of Institutional Reference Data at Morgan Stanley.
The SmartStream Reference Data Utility operates 24/7 to support its client base from centers in New York, London, Bristol, San Jose, Mumbai and Bangalore. Global coverage of listed equities, derivatives, fixed income and structured products incorporates a universe of more than 20 million securities.