Goldman Sachs, J.P. Morgan Chase and Morgan Stanley have teamed up with SmartStream to create a new reference data utility.
The SmartStream Reference Data Utility, informally known as Securities Product Reference Data (SPReD), will provide services for instrument reference data normalisation and validation across all asset classes. The founding banks will also become clients of the utility.
The service will provide clients with a multi-tenanted, auditable environment for data collection, cleansing, and change management based on customised integration standards to generate a flexible, bespoke security master database.
Leveraging common market processes, incorporating best practices and individual controls, consumers of instrument data across capital markets will benefit from savings and operations improvements as clients of the utility, according to SmartStream.
“The new SmartStream Reference Data Utility is at the forefront of what really is an evolution in the industry with the achievement of processing mutualisation, the reduction in operational risk and an increase in service quality within the reference data management domain,” stated Philippe Chambadal, CEO of SmartStream.
“Our three bank members have embraced the utility model to ensure that the duplication of effort is minimised when addressing common market issues such as inconsistent data in regulatory reporting, costly trade breaks, and risk management.”
Julie Harris, head of operations data quality management at Goldman Sachs, said: “We are pleased to partner with SmartStream and our industry peers on an innovative product that combines emerging technology with a common utility model. We believe this solution presents great value for our organisation and the broader industry.”
“With the growing challenges around regulation, risk management and product diversity, working together to ensure high-quality reference data is in everyone's best interest,” added Eric Suss, head of institutional reference data at Morgan Stanley.
The SmartStream Reference Data Utility operates 24/7 to support its client base from centres in New York, London, Bristol, San Jose, Mumbai and Bangalore. Global coverage of listed equities, derivatives, fixed income and structured products incorporates a universe of more than 20 million securities.
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