Press Release Summary: Reference data automation efforts are currently showing a significant increase as a global survey by AIM Software reveals
Press Release Body: VIENNA/ZURICH - According to a new survey conducted by AIM Software, the financial industry's focus has recently shifted from complying with Basel II to MiFID (Markets in Financial Instruments Directive). AIM Software's study was designed to inquire into the driving forces, challenges and planned investments for reference data automation and risk management. This year's survey was sponsored by Interactive Data (Europe) Ltd, part of Interactive Data Corporation (NYSE: IDC), and a leading supplier of financial information to global markets.
The current findings reveal that improving reference data quality is regarded more than ever as a key issue for operational risk management and that regulatory requirements had no less impact on these decisions than last year, while companies now 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 and costs associated with back office workflows through improved straight through processing (STP). This year, 58 per cent of the survey's respondents named improved efficiency as an important driving force for implementing a reference data management solution.
Martin Buchberger, head of Marketing at AIM Software, states: \"Financial institutions are beginning to realise that investments in reference data management can help to reduce not just operational risks but also operational costs. The surging investments in the back office are emphasizing the significantly changed agenda and are a sign of the constant evolution in back office infrastructures that started some years ago."
Buchberger adds: "The results show that companies see the close interdependence between high quality reference data management and operational efficiency." The fact that 54 per cent of the interviewed companies are planning to invest in the automation 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 the processing of corporate actions data, the areas from which the largest costs originate. 33 per cent of this year's respondents plan to increase their levels of automation for corporate actions. "Companies realise that they could face serious operational risk and huge losses in this area. Corporate actions are one of the least automated areas and therefore one of the most labour-intensive, error- and risk-prone areas," states Graham Parry, manager of Interactive Data's European Business Development Group.
The predominance of proprietary reference data management solutions has reduced significantly since this area is no longer regarded as an internal core competency of an institution\'s IT department. Although 38 per cent of the companies interviewed still rely on internally built solutions, the number of companies preferring to buy a data management solution grew from 22 per cent in 2006 to 41 per cent in 2007. One reason for this trend might be the wider range of standardised data and risk management solutions now available on the market, and that more and more market players are rethinking their data sourcing infrastructures.
"Our research activities are aimed at giving an in-depth insight into global trends and developments in the back office area. The budgets in reference data management and STP are obviously growing with companies trying to further catch up in these areas," concludes Buchberger.
Detailed findings of the survey can be downloaded for free at http://www.dmstudy.info/pageID=115002
About the AIM Global Reference Data Survey 2007 The survey was conducted by AIM Software for the fourth consecutive year and was sponsored by Interactive Data (Europe) Ltd. The sample included 377 financial institutions in 65 countries which filled out an online questionnaire about their plans regarding reference data and risk management, the handling of regulatory requirements and more.
For further information, please contact: For AIM Software Gerlinde Pachinger PR & Communications Tel: +43 1 5124652 E-mail: pr@aimsoftware.com
About AIM Software Established in 1998, AIM Software is one of the leading providers of reference data management and risk management solutions for financial markets, with offices in Austria, Switzerland, the US, Hong Kong and Japan. AIM Software is active in the major financial centres based on its service and support partner network and supports more than 100 references in 15 countries. Supported by the company\'s expertise in the areas of reference data management, risk management and financial instrument pricing, the creation of future proof software solutions is the cornerstone of AIM Software\'s business mission. For further information, please visit http://www.aimsoftware.com
About Interactive Data Corporation Interactive Data Corporation (NYSE: IDC) is a leading global provider of financial market data, analytics and related services to financial institutions, active traders and individual investors. The Company\'s businesses supply time-sensitive pricing, evaluations and reference data for more than 3.5 million securities traded around the world, including hard-to-value instruments. Many of the world\'s best-known financial service and software companies subscribe to the Company\'s services in support of their trading, analysis, portfolio management and valuation activities. Through its businesses, Interactive Data Pricing and Reference Data, Interactive Data Real-Time Services, Interactive Data Fixed Income Analytics, and eSignal, the Company has approximately 2,200 employees in offices located throughout North America, Europe, Asia and Australia. The Company is headquartered in Bedford, Mass. Pearson plc (NYSE: PSO; LSE: PSON), an international media company, whose businesses include the Financial Times Group, Pearson Education, and the Penguin Group, 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' and investment funds\' pricing activities, securities operations, research and portfolio management. Interactive Data Pricing and Reference Data collects, edits, maintains and delivers data on more than 3.5 million securities, including daily evaluations for approximately 2.5 million fixed income and international equity issues. Interactive Data Pricing and Reference Data specialises in 'hard-to-get' information and evaluates many 'hard-to value' instruments.
Pricing, evaluations and reference data are provided in the US through Interactive Data 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, please visit www.interactivedata.com
Interactive DataSM and the Interactive Data logo are service marks of Interactive Data Corporation.
For further information, please contact: For Interactive Data Sue Mitchell Tel: +44 (0)20 7825 8076 E-mail: sue.mitchell@interactivedata.com
2022
