As new global regulatory reform dominated 2010, transparency, global entity identifiers, systemic risk monitoring, were among the top twenty five scenarios that became popular in the data management arena this year, according to a report issued Tuesday by the Enterprise Data Management Council, the trade group representing Wall Street’s largest data management experts.

Among the top twenty five unpopular ones: Asymetry; international business entity identifiers; data fragmentation and bespoke transactions.

As is often the case with financial legislation, it all comes down to how data is managed.

The Dodd-Frank Reform Act, coupled with growing investor demands are prompting firms to keep better tabs on the transactions they execute and process as well as the counterparties they do business with. Across the pond, European regulators are coming up with their own version of financial reform along similar lines.

If financial firms don’t exactly know what is going on in their shops they can’t measure their enterprisewide risk. And if they can’t do that, how is the government supposed to measure systemic risk. That’s now been assigned to the newly created Office of Financial Research which has to in turn, gather the data from Wall Street’s biggest firms to present its evaluation of the financial industry’s health to a higher authority- the Financial Stability Oversight Council.

But there is just one key glitch: More often than not, data is fragmented in multiple applications, in multiple business silos. That means firms have to not only ensure data is consistent but that its accurate and aggregated quickly enough to be reported to the OFR. That’s a lot easier said than done.

The new U.S. government agency has also just put out a request for proposals for an industry-led organization to identify the counterparties which trade the securities. Such information is particularly critical when it comes to the riskiest of investments – over-the-counter derivatives where legislation calls for the use of centralized clearinghouses for “standardized contracts” and storage of transactional data in repositories.There are currently dozens of identification codes – both internal and third party—which firms have to rely on. That means a lot of cross-referencing and potential for error.

Here’s the rundown on the top 25 ins and outs in data management for 2010 outlined by the EDM:



Age of Transparency

Dodd-Frank legislation

Global Entity Identifier

Supply Chain Management

OTC Derivatives Transparency

Systemic Risk

Financial Stability Oversight Council

Semantic Repositories

Enterprise Data Management


Entity Management

Data Integration

Product Attributes

European Systemic Risk Board

Concentration and Liquidity Risk

Volker Rule

G20 Coordination

Sovereign Debt Crisis

Public Trust

Data as Operational Infrastructure

Source Tagging

Science and Discipline

Office of Financial Research

Capital Adequacy

Regulatory Tsunami



Age of Asymetry

Wall Street Reform and Protection Act

International Business Entity Identifier

Data Fragmentation

Bespoke Transactions

Operational Risk

Financial Stability Forum


Silo Data Management

Data Transformation

Single View of Customers

Legacy Applications

Classification Schemes

De Larosier Commission Report

Jump to Default

Proprietary Investments

National Policies

The Euro

Shareholder Value

Data as IT Infrastructure

Data Fragmentation

Art and Practice

National Institute of Finance

Capital Leverage

Global Legislative Restructure

This story has been reprinted with permission from Securities Technology Monitor.

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