American International Group has signed a reference data outsourcing agreement with Cicada Risk, the recently established data cleansing offshoot of market data firm Cicada.
Under the multi-year agreement, Cicada Risk is to provide a solution for the integration, cleansing and feeding of multi-sourced financial data to AIG's global reference databases used to support its risk management models and applications. Confirmation of the contract comes within six weeks of the spin-off of Cicada Risk from its market data parent.
The company is to utilise its flagship Composer data management and distribution technology, operations and data management services, and proprietary data cleansing technology and processes to meet AIG’s data requirements.
The quality of company reference data has been identified as a key stumbling block to straight-through processing at financial instutions. Both Reuters and CapCo, through their Synetix joint venture, and Netherlands-based data cleansing outfit Asset Control have recently developed reference data bureau services.