Banking CIO Outlook

GoldenSource

Integrated Approach to Multi-Regulatory Compliance

John H. Eley, CEO, GoldenSourceJohn H. Eley, CEO
The current regulatory landscape challenges financial institutions to be more accountable for their data. Regulations such as Basel III, FRTB, MiFID II and GATCA have brought data management issues to the top of the agenda, not just for the IT departments but also for operations and boardrooms. With the data volume and the need for transparency on the rise, financial institutions require a 360 degree view of their data across processes—meaning that good data management is now critical. John H. Eley, CEO of GoldenSource, having over 20 years experience in capital markets and multiple financial technologies says, “A bank might want to comply with regulations to the letter of the law at the least cost. Another bank might want to use ‘regulatory change’ as the catalyst for improving overall operational efficiency and control. Both are valid approaches.”

GoldenSource is unique in its ability to power both financial institutions and shared utilities with an integrated Enterprise Data Management (EDM) platform that combines instrument, entity, and transaction data on a single platform and brings quality and transparency into the data supply chain. The GoldenSource EDM platform is a centralized and optimized strategic approach to data management that enables firms to improve data governance and meet risk and compliance demands.

“Our ability to carve out and shrink-wrap functionality from our modular platform ensures we are directly relevant to clients’ needs while also laying the foundation for a centralized capability,” asserts Eley. GoldenSource has the ability to accommodate the needs of both buy- and sell-side data management and can scale and perform as required. The firm’s new state-of-the-art tools cover all instruments and asset classes including equities, fixed income, structured products, funds and complex derivatives. In addition to market leading data visualization, queries and reports it gives data operations teams across the buy- and sell-side the power to configure validation and derivation rules and make screen and workflow modifications themselves, without IT intervention.

Our ability to carve out and shrink-wrap functionality from our modular platform ensures we are directly relevant to clients’ needs while also laying the foundation for a centralized capability


In one instance, the strategic vision for a North American bank with over 45,000 employees was to implement an enterprise-wide security mastering platform to overcome the limitations of older technologies, comply with current regulatory requirements, manage its various reference data feeds and ensure controls around data sourcing and distribution. By leveraging GoldenSource Security Master, a module within the GoldenSource EDM platform, the bank was able to integrate seamlessly with existing technology infrastructure by utilizing the current data vendor file management infrastructure, company standard scheduling utility, as well as with standard messaging middleware and file publishing infrastructure for data distribution—exceeding SLA requirements. In terms of financial impact, the bank saved on costs associated with building a temporary in-house solution and with a 12 week implementation timeline, it achieved mandated regulatory compliance, hence avoiding consequences of non-compliance.

Moreover, GoldenSource Connections, an extensive set of interfaces (APIs), allows vendor data feeds to be directly plugged into a bank’s data management platform. When the data vendors change the structure of their feeds, it’s normally a job for IT to re-map the system. With GoldenSource Connections, GoldenSource maintains the mappings whenever changes are made by the data vendors.

“We listen to our clients and watch the industry for the latest regulations or financial products that require mastering within banks and buy-side firms,” states Eley. Forging ahead, the firm is also planning to extend its range of cost-effective and secure ways to operate cloud services and continue reshaping its business model for benefiting financial firms in managing and consuming data.
Top 10 Risk and Compliance Solution Companies - 2017

Company
GoldenSource

Management
John H. Eley, CEO

Description

Delivers Master Data Management (MDM) and Enterprise Data Management (EDM) for trading, compliance, risk management, settlements and accounting purposes

GoldenSource News

GoldenSource partners with Snowflake to enhance data services

Cloud data management solutions provider GoldenSource has launched a Snowflake-native app, available alongside its data warehouse schema for use in the Snowflake Data Share.

GoldenSource’s schema allows firms to identify, structure, describe and link relevant data outside of an organisation’s use and process of the data. This will help to create a comprehensive data model, instead of the disparate datasets within data lakes that firms are currently handling.

GoldenSource offers a schema that enables organizations to identify, structure, describe, and establish connections among relevant data that is used and processed outside of the organization. This approach aims to create a comprehensive data model, as opposed to the fragmented datasets typically found in data lakes that companies currently manage.

The availability of GoldenSource's schema on Snowflake's cloud data platform allows for the mapping and restructuring of various datasets in a user-friendly format. This enables market participants to efficiently analyze the data within Snowflake, leading to accelerated utilization of analytical tools, enhanced data insights, and improved decision-making.

More specifically, GoldenSource's Snowflake Native App has the capability to internally clean and transform raw data. Additionally, it can populate data schemas with information sourced from Snowflake Data Share or public cloud storage containers.

Jeremy Katzeff, head of buy-side solutions af GoldenSource, says: “Historically, there have been significant barriers for firms to gain meaningful insights and value from cloud data content, because of disparate datasets that are unstructured in nature. With this collaboration, we aim to revolutionise the way datasets are integrated and analysed within a modern cloud-native environment, allowing organisations to extract more valuable insights from data content, with a greatly improved user experience.”

Goldensource Launches Pioneering Risk Factor Taxonomy

GoldenSource, the leading independent provider of Enterprise Data Management (EDM) and Master Data Management (MDM) solutions, has created a first-of-its-kind market risk factor data standard. This provides sell-side financial market institutions with a standardized risk factor typology to capture and store market rates and volatilities, link these to pre-defined curve and surface structures and allow for standardized dimensions for risk and finance data aggregation and reporting.

The new standard, which GoldenSource calls Curve Master Definitions, seeks to provide investment banks with a single risk factor taxonomy for the market rates required to price over-the-counter (OTC) derivatives, including the storage and aggregation of industry-standard conventions required for quantitative processes. This includes yield curve building, volatility surface calculations, and industry-standard interpolation methodologies. The taxonomy will allow financial market institutions to take a common approach to reviewing and conforming to the trading book processes that are prerequisites for the Fundamental Review of the Trading Book (FRTB) framework, due to be implemented on 1 January 2025 in most jurisdictions. These trading book processes include independent price verification, bid-ask reserving, marking to model, adjustments for illiquid positions, stress testing, internal model reviews, and interest rate risk in the banking book, among others.

Curve Master Definitions offers a single taxonomy for derivative pricing market risk factors. Without such a taxonomy, banks are presented with significant challenges in their efforts to comply with market risk regulations and auditability requirements, including ensuring consistency of approaches between trading book processes, difficulties linking risk factors to trades for the assessment of the ‘modellability’ of risk factors, valuation reporting integrity, market risk reporting integrity, and market risk exposure aggregation.

By providing a structured and consistent approach to defining market risk factors, GoldenSource’s Curve Master Definitions will offer users a more holistic view of their risk factors, as well as an accelerated approach for implementing the core GoldenSource Curve Master module, designed to centralize and validate the market rates for curves and surfaces that form the set of a bank’s market risk factors. Beyond helping firms to align their FRTB and core trading book processes, having a standard taxonomy for market risk factors will allow firms to standardise their approaches to regulatory requirements, such as stress testing, internal model reviews and interest risk in the banking book.

The development of GoldenSource’s Curve Master Definitions was led by the company’s head of market data, quant and risk solutions, Charlie Browne, who is completing a PhD on the merits of taking a taxonomic approach to risk factors in derivative pricing.

Commenting on the launch, Browne said: “This innovation has the potential to be impactful for the banking sector, including the regulators and central banks who are responsible for its oversight. In addition to transforming the way market participants approach trading-book process alignment, the taxonomy could act as a useful tool for regulators and auditors for ensuring that there is commonality between the data set that underlies all trading book processes, namely market rates.”