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Symbology - mastering the art of trade symbol interpretation
The Merriam Webster dictionary defines ‘symbology’ as a system - and the interpretation of symbols. It also defines it as ‘the art of expression by symbols’ which if applied to the confusion of symbols used to describe specific derivatives reference data might suggest a more abstract than realist art form.
Article
The Merriam Webster dictionary defines ‘symbology’ as a system - and the interpretation of symbols. It also defines it as ‘the art of expression by symbols’ which if applied to the confusion of symbols used to describe specific derivatives reference data might suggest a more abstract than realist art form.
Article
This week marked the 16th anniversary of the FIA IDX in London - Walt Lukken, President and CEO of FIA opened the event with a keynote address that touched on the developments and challenges facing the global derivatives market, and particularly the potential impacts of a ‘historic election year’ for Europe, the UK and North America.
Article
The fast-approaching Eid al-Adha holiday, the second of the two main holidays celebrated in Islam that this year begins on June 14, is a timely opportunity to look at another essential element of financial markets reference data - exchange holiday dates.
Article
The global Futures and Options market continues to grow exponentially, year on year, in terms of the absolute number and volumes of F&O instruments issued and traded, and especially the explosive growth in trading activity in newer markets. In the APAC region, for example, futures and options (and other derivatives) trading is gaining huge momentum and represents an increasingly large share of the ‘global derivatives wallet’. It is estimated that this region’s trading volumes doubled in 2023, with particularly significant activity in India and China. In India alone, activity on major exchanges including the National Stock Exchange leapt around 80% in equity-related derivative transactions (and around 30% for energy, agriculture and precious metals).
Article
Data normalisation - standardising the presentation of data to ensure it is consistent across required fields and records - is an essential component of effective financial data management, enabling reference data in particular to be recognised, interrogated and incorporated into required data workflows much more easily, and minimising the risk of reconciliation and compliance ‘fails’.
Article
Not only is there a requirement to report additional information, EMIR Refit also places enormous emphasis on enhancing and harmonising the quality of the data itself to support end to end validation and data reconciliation obligations, and to mitigate the risk of misreporting - and having to report associated reporting failures.
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Big isn’t necessarily always best when it comes to financial data services delivery and it’s important for firms to weigh up the relative pros and cons when considering what makes the most sense for them to support their data management needs.
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While perhaps regarded as being at the less glamorous end of the transaction data spectrum, reference data in fact accounts for some 70% of all of the data required to be captured in every financial market transaction.
Article
Wrongly ‘labelled’ products and the wrong information in the wrong reporting fields will cause EMIR Refit reporting failures, with associated tedious and costly remediation and re-reporting and potential for regulatory penalties and sanctions.
Report
More than half of tier 2 & 3 banks have an inefficient derivatives reference data management workflow, a study by FOW and Acuiti.io has found.
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A record number of trade and transaction reporting ‘rewrites’ are required to be implemented before the year end: EMIR Refit in the UK in September, ASIC (Australian rules) Rewrite in October, along with MAS (Singapore) Update and proposed JFSA (Japan), CFTC Rewrite Phase 2 and SEC 10C-1 (both US) rule changes all have a direct impact on reporting of derivatives trades.
Article
In the continuing absence of single, global identification and transaction messaging standards, the challenges of managing reference data are many and varied, since every data point may be subject to multiple interpretations - and indeed uses - in different contexts.
Article
It is a truth universally acknowledged that faulty reference data is, today, one of the key contributors to regulatory reporting failures.
Article
Reference data plays an increasingly critical role in the smooth running of global financial markets, touching on every part of the transaction lifecycle.
Article
The use of reference data is not always an ‘after the event’ activity for reporting purposes. Futures and options reference data in particular is not only instrumental but also mission critical in price discovery for forward-priced transactions. As such, any problem with this data, whether at source , in its delivery to an end user application, or because of a ‘glitch in the matrix’ on the end user side , can cause major headaches.
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UK regulatory authorities have launched a consultation on changes to technical standards that govern margin requirements for uncleared derivatives.
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The UK Financial Conduct Authority (FCA) will canvass opinions about derivatives transparency rules “later this year”, after pressing ahead with plans to introduce a bond and equity consolidated tape (CT).
Article
Singapore Exchange (SGX) has hit an open interest record on its Indian rupee/US dollar (INR/USD) futures, after a rising trend in the country’s interest rate over the last year has driven hedging demand.
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What were the hot topics at the event? An overriding theme was the challenge and opportunity that technology, and in particular, the cloud and Artificial Intelligence (AI) present for the derivatives sector. This discussion dominated every session, whether looking at regulation, operations, or the future of markets. Let’s look at each in turn.
Article
In the world of finance, market and reference data management is a critical function supporting trading, risk management, regulatory compliance and enterprise and customer reporting. In essence it is the efficient collection, storage, processing and distribution of accurate and timely data to support all participants and activities in financial transaction lifecycles.
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Small to medium sized firms can now access the same market data sources as the largest investment banks but at significantly lower costs.
Article
In today’s ever-expanding and evolving global financial markets infrastructure - more assets, venues, platforms, vendors and counterparties - banks and financial institutions want:
Article
Derivatives markets participants have been -figuratively - under the regulatory cosh for years and particularly since the 2008 global crash, and subsequent regulatory focus on ensuring fair and effective markets. Several regulations directly impact derivatives data management and reporting, including EMIR, SFTR (ESMA’s Securities Financing Transactions Regulation), MiFIR and the Dodd-Frank Wall Street Reform and Consumer Protection Act.
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The absence of a common language to unify the identification of financial instruments between trading participants across a trade lifecycle, necessitates good symbol management. This can also translate into distinct competitive advantage for firms who can offer interoperability services for their clients’ preferred infrastructures.
Article
The force of the community data model applied to reference data is consistent and progressive but at times supercharged in its reaction to fundamental market change. The real time use of reference data in daily trading operations offers a dynamic exposure to prove, or not, data quality and is an essential part of an inclusive quality assurance process.
Article
In a response to a US Securities and Exchange Commission (SEC) consultation on proposed rules to strengthen oversight of custody and securities lending by investment managers, the New York-based trade body said the rules are too widely drafted, potentially hampering the use of derivatives on behalf of clients which could affect liquidity in the wider market.
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Winston Churchill’s infamous words “now this is not the end, it is not even the beginning of the end, but it is, perhaps, the end of the beginning,” immediately spring to mind when it comes to the May 24 deadline for T+1.
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As one of the sponsors of Trading Amsterdam 2023, ETD is proud to share some of the insights and key themes from the leading derivatives event for the trading and investment community.
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Accurate and timely data are one of the key challenges faced by asset managers as they prepare for the migration to next-day, T+1 settlement in the US, according to a new report.
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Liquidity in the Euro area banking system fell almost 6% in the three months to the start of last month due to early repayments to the European scheme that provides financing to banks.