Goldman Sachs, JPMorgan Chase and Morgan Stanley are teaming with SmartStream to create a new reference data utility, providing validation across all asset classes while sharing operations and technology costs.
The SmartStream Reference Data Utility, informally known as Securities Product Reference Data (SPReD), will provide clients with a multi-tenanted, auditable environment for data collection, cleansing, and change management under a bespoke security master database.
The banks are understood to have invested seven-figure sums in the venture, which will initially focus on listed derivatives and equity data, with fixed income-related data added later.
Philippe Chambadal, CEO of SmartStream, says: “Our three bank members have embraced the utility model to ensure that the duplication of effort is minimised when addressing common market issues such as inconsistent data in regulatory reporting, costly trade breaks, and risk management.”
The Utility will utilise SmartStream’s existing data management service, operating 24/7 across a universe of 20 million securities from centres in New York, London, Bristol, San Jose, Mumbai and Bangalore.
For the banks, their investment provides a cost-effective opportunity to improve the quality, timeliness and consistency of reference data.
Eric Suss, MD and head of institutional reference data at Morgan Stanley, says: “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.”