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The current findings reveal that improving reference data quality is regarded morethan ever as a key issue for operational risk management and that regulatoryrequirements had no less impact on these decisions than last year, while companiesnow focus more on MiFID rather than on Basel II as in the last few years.
Regulations apart, the surveyed companies are also focusing on reducing errors andcosts associated with back office workflows through improved straight throughprocessing (STP). This year, 58 per cent of the survey s respondents named improvedefficiency as an important driving force for implementing a reference datamanagement solution.
Martin Buchberger, head of Marketing at AIM Software, states: "Financialinstitutions are beginning to realise that investments in reference data managementcan help to reduce not just operational risks but also operational costs. Thesurging investments in the back office are emphasizing the significantly changedagenda and are a sign of the constant evolution in back office infrastructures thatstarted some years ago.
Buchberger adds: The results show that companies see the close interdependencebetween high quality reference data management and operational efficiency. The factthat 54 per cent of the interviewed companies are planning to invest in theautomation of reference data within the next two years underlines this finding.
The focus of reference data management lies in the automation of static data and theprocessing of corporate actions data, the areas from which the largest costsoriginate. 33 per cent of this year s respondents plan to increase their levels ofautomation for corporate actions. Companies realise that they could face seriousoperational risk and huge losses in this area. Corporate actions are one of theleast automated areas and therefore one of the most labour-intensive, error- andrisk-prone areas, states Graham Parry, manager of Interactive Data s EuropeanBusiness Development Group.
The predominance of proprietary reference data management solutions has reducedsignificantly since this area is no longer regarded as an internal core competencyof an institution's IT department. Although 38 per cent of the companies interviewedstill rely on internally built solutions, the number of companies preferring to buya data management solution grew from 22 per cent in 2006 to 41 per cent in 2007. Onereason for this trend might be the wider range of standardised data and riskmanagement solutions now available on the market, and that more and more marketplayers are rethinking their data sourcing infrastructures.
Our research activities are aimed at giving an in-depth insight into global trendsand developments in the back office area. The budgets in reference data managementand STP are obviously growing with companies trying to further catch up in theseareas, concludes Buchberger.
Detailed findings of the survey can be downloaded for free athttp://www.dmstudy.info/pag eID=115002
About the AIM Global Reference Data Survey 2007The survey was conducted by AIM Software for the fourth consecutive year and wassponsored by Interactive Data (Europe) Ltd. The sample included 377 financialinstitutions in 65 countries which filled out an online questionnaire about theirplans regarding reference data and risk management, the handling of regulatoryrequirements and more.
For further information, please contact:For AIM SoftwareGerlinde PachingerPR & CommunicationsTel: +43 1 5124652E-mail: pr@aimsoftware.com
About AIM SoftwareEstablished in 1998, AIM Software is one of the leading providers of reference datamanagement and risk management solutions for financial markets, with offices inAustria, Switzerland, the US, Hong Kong and Japan. AIM Software is active in themajor financial centres based on its service and support partner network andsupports more than 100 references in 15 countries. Supported by the company'sexpertise in the areas of reference data management, risk management and financialinstrument pricing, the creation of future proof software solutions is thecornerstone of AIM Software's business mission. For further information, pleasevisit http://www.aimsoftware.com
About Interactive Data CorporationInteractive Data Corporation (NYSE: IDC) is a leading global provider of financialmarket data, analytics and related services to financial institutions, activetraders and individual investors. The Company's businesses supply time-sensitivepricing, evaluations and reference data for more than 3.5 million securities tradedaround the world, including hard-to-value instruments. Many of the world'sbest-known financial service and software companies subscribe to the Company'sservices in support of their trading, analysis, portfolio management and valuationactivities. Through its businesses, Interactive Data Pricing and Reference Data,Interactive Data Real-Time Services, Interactive Data Fixed Income Analytics, andeSignal, the Company has approximately 2,200 employees in offices located throughoutNorth America, Europe, Asia and Australia. The Company is headquartered in Bedford,Mass. Pearson plc (NYSE: PSO; LSE: PSON), an international media company, whosebusinesses include the Financial Times Group, Pearson Education, and the PenguinGroup, is Interactive Data Corporation's majority stockholder.
Interactive Data Pricing and Reference Data provides global securities pricing,evaluations and reference data designed to support financial institutions andinvestment funds' pricing activities, securities operations, research and portfoliomanagement. Interactive Data Pricing and Reference Data collects, edits, maintainsand delivers data on more than 3.5 million securities, including daily evaluationsfor approximately 2.5 million fixed income and international equity issues. Interactive Data Pricing and Reference Data specialises in hard-to-get informationand evaluates many hard-to value instruments.
Pricing, evaluations and reference data are provided in the US through InteractiveData Pricing and Reference Data, Inc. and internationally through Interactive Data(Europe) Ltd. and Interactive Data (Australia) Pty Ltd.
For more information about Interactive Data Corporation and its businesses, pleasevisit www.interactivedata.com
Interactive DataSM and the Interactive Data logo are service marks of InteractiveData Corporation.
For further information, please contact:For Interactive DataSue Mitchell Tel: +44 (0)20 7825 8076E-mail: sue.mitchell@interactivedata.c om
