Euroclear Bank and SmartStream have partnered to develop a centralized reference data utility service that sources securities data from data vendors and data originators, including central securities depositories and stock exchanges.
Data in the Central Data Utility (CDU) will be validated, cleansed of inaccuracies and enriched, then relayed to clients on an intraday basis. CDU will be powered by SmartStream.
The two firms say CDU offers back-office savings and more accurate securities information. It will be launched with Eurobond data then expanded to other asset classes and geographies.
Yves Poullet, CEO of Euroclear Bank, says 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, Poullet says. Firms no longer need to bear the enormous costs and risks of scrubbing securities information themselves.
Poullet says the firms have estimated back-office savings for users of CDU of 20 million per year.
“We are very proud we could help bring this revolutionary data utility to market,” says Philippe Chambadal, CEO of 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. 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.”
(CG)