Reuters and Capco have launched a new ASP (application service provider) service for financial institutions designed to improve the consistency of their reference data and minimise the risk and high cost of failed trades.
The Reuters Reference Data Manager is the first service from Synetix, the joint venture between Reuters and Capco established in October 2001.
The service analyses data held across different and geographically dispersed business systems and translates it into a common format. This creates a single view of the reference data used by the organisation enabling inaccuracies or incomplete items to be easily identified and amended, say the companies.
A recent Reuters, Capco and TowerGroup survey found that 37 per cent of financial institutions did not have a reference data strategy despite the impact of poorly managed data on their business. The survey found that over 30 per cent of financial trades fail due to incomplete or inaccurate reference data. Half of the respondents said managing data was made increasingly difficult by the fact it was stored in ten or more different systems with only four per cent of data records updated automatically.
Mark Sievewright, president & CEO of TowerGroup, comments: "By failing to implement a clear data strategy, institutions are wide open to failed trades, undue risk, and the associated cost and inefficiency.”
Cormac Kelly, chief executive officer of Synetix says the Data Manager tool is the first in a range of STP-enabling services which Reuters plans to deliver through the joint venture.