Alveo today announces its integration with the Derivatives Service Bureau (DSB), extending its Prime data management platform to support ISIN creation and reference data lookup for OTC derivative instruments for full MiFID II compliance.
Prime is Alveo’s flagship product for master data lifecycle management, tracking every data element from the point of capture to final delivery. It maintains packaged integration with a large number of data providers and integrates multiple sources in comprehensive, clean, trusted data, giving banks and asset managers the ability to manage costs and achieve the highest standards of data governance. The integration with the DSB in the form of a new interface for Prime supplements its existing data processing capabilities.
Enterprise Data Management (EDM) systems have typically been used to bulk-load and warehouse security master data. However, as the data management sector has moved from ‘building for inventory’ to ‘building to order’, cycle times have shortened and new client onboarding or instrument set-up have led to ad-hoc, intra-day requests. Concurrently, data providers are adapting their supply methods and offer ad-hoc, piecemeal access via APIs on top of the traditional file-based distribution model. The DSB is an example of a new industry service providing instantaneous financial data requests.
Malavika Solanki, of the DSB management team, explains: “Industry integration of the new automated OTC derivative ISIN issuance utility is being completed to support identification and reporting of OTC derivatives. We welcome the effort that organisations globally, such as Alveo, are putting into systems that support the real-time data sourcing model key to achieving compliance.”
Martijn Groot, VP Product Management, Alveo, comments: “MiFID II regulation presents the need for organisations to retrieve a specific set of data including, but not limited to, ISIN codes and TOTV and uTOTV flags for new as well as existing OTC derivatives. To do this, users are required to supply the Product Definition and further Input Attributes to the DSB via their RESTful API, the FIX Protocol or a web GUI.
“Upon initiation of an OTC instrument request, Prime triggers a lookup mechanism to first check if the requested information is already available in its master database. If not, an automatic follow up process takes place, routing the request to the DSB to complete the master record and thereafter transmit the results back to Prime and the requesting system. This process increases flexibility and prevents any unnecessary costs, requests and delays.”
In addition, the Prime data model has been extended to fully support all financial instruments and their required reference data attributes for MiFID II. Furthermore, Alveo has extended its integration with existing enterprise data providers to onboard all newly published MiFID II fields to provide its users an easy path to obtain required MiFID II data and flexibility in sourcing it from different providers.
Mark Hepsworth, CEO, Alveo, concludes: “Alveo’s new integration with DSB services will act as a bridge between requesting user systems and our existing, flagship Prime solution. In combination with its fully maintained data model and vendor integration, Prime will represent a holistic solution for the end to end tracking of master data, further emphasising our focus on helping to ensure that users are truly MiFID II ready.”
About The Derivatives Service Bureau (DSB) Ltd
Headquartered in London, the DSB is a legal subsidiary of ANNA. Its core purpose is to serve as a global numbering agency, providing unique identification of OTC derivatives to serve the needs of market participants and regulators through allocation of the International Securities Identification Number (ISIN), as well as the Classification of Financial Instruments (CFI) and Financial Instrument Short Name (FISN), as OTC products are created. The ISIN, CFI and FISN are globally recognized and adopted ISO standards for identifying and classifying financial instruments.
More detailed information on the DSB and its development path can be found in the DSB section and related pages, as well as recent announcements at the ANNA website.