Reference Data Management Services Overview of Reference Data Management Services Holistic RDMS Offering Corporate Actions Processing
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Major Challenges for Investment Banks in Managing Reference Data
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Duplicate Data Purchases
• Siloed organizational structure (separate order management, portfolio management and portfolio accounting systems) and poor data governance practices result in huge duplicate reference data purchases
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Data Quality
• Poor data quality is resulting in failed trades, errors on client statements, erroneous performance calculations and inaccurate risk measurements among host of other costly outcomes • Sutherland Research shows that 30% of all trades fail to execute properly because of poor data and the opportunity cost of that goes in millions of dollars.
• Sutherland Research shows that on an average 25 percent of annual reference data spend is wasted on redundant data purchases and inefficient data governance
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Costly Data Pricing
• Excessive data pricing as buying power is spread across multiple vendors, and data vendor negotiation is not based on the full relationship with the firm • Many business units determine their needs and data sources individually, and do their own vendor contract negotiation and management.
Unused/ Underused Data
• Many instances where unused data services and licenses are left unidentified. • Sutherland Research shows that common reasons are - recent staff cuts and reassignments, changes in products and processes, M&As, consolidation of business units, and divestitures, etc.
Real-time Data Integration Challenges
• Many investment banks do not have a perfect in-house IT platform to integrate different data formats on real-time basis
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Overview of Reference Data Management Services Assessment & Benchmarking
Optimization
Total Cost of Ownership Analysis Data Sourcing Strategy & Licensing Needs Analysis
Practice in the Industry
Data Yield Analysis Data Usage Analysis •
By Asset Class
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Downstream System
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Portfolio,
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Geography, Client etc.
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Analysis of Attribute Coverage by Asset Class
Vendor Sourcing by Asset Class
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Data Maturity Assessment & Strategy Benchmarking of Reference Data Management
Data Redundancy Analysis & Optimize Data Procurement
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Assessment of Ref Data Infrastructure & Operations
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Operate
Data Operations
Data Cleansing & Data Integrity Operations – creation of the ‘Golden Copy’ for the enterprise
Quality Assurance & Data Quality Management – Corporate Action, Client /Counterparty Data Management, Reconciliations,
Security Master & Pricing Master maintenance
© 2014 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.
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Holistic RDMS Offering
Manual data cleansing support
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Index and normalize securities data
New securities setup
Reference data efficiency dashboards Performance Attribution
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Reference and Data Rationalization
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Holistic RDMS Offering
Core Managed RDMS Offering
Supporting
Enterprise data architecture assessment
Automated data cleansing systems
Corporate actions processing
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Consulting Data Redundancy Analysis; Data Yield Analysis
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Sutherland’s Corporate Actions Processing Corporate Actions Processing
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Allocate entitlements to investors Notify investors of final transactions Close-out event
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Event Settlement
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Collect announcement information Consolidate data
Process the event settlement actions Confirm payment communication, Process receipts, etc.
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Reconciliation & Reporting
Announcement Collection
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Instruction Processing
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Reconcile voluntary actions / events Communicate elections from investors thru intermediaries Submit instructions before deadline
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Announcement Validation
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Normalize, reconcile and enrich data Validate for accuracy and completeness Produce scrubbed record
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Identification and Notification
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Determine affected investors and calculate entitlements Notify investors of information
© 2014 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.
www.sutherlandglobal.com February 21, 2014
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Thank You
Š 2014 Sutherland Global Services Inc., All rights reserved. Privileged and confidential information of Sutherland Global Services Inc.
www.sutherlandglobal.com February 21, 2014
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