Algorithmics Managed Data Services, an outsourced data management service, helps financial institutions improve the quality, and reduce total costs of ownership, of market and reference data required as inputs into financial models. With its sophisticated data enrichment methodology and sound validation process, this service enhances confidence in the accuracy of the risk analytics, and helps meet more stringent regulatory requirements for data quality and reliability. The solution allows financial institutions to focus on their core business activities while IBM specialists take over the intensive and time-consuming data management and integration process.
Algorithmics Managed Data Services offers financial institutions an advanced data collection and enrichment methodology, underpinned by a sound validation process, for data at an instrument, security or fund level. It gives firms access to the following IBM data management tools required for repeatable and consistent risk analytics.
- Market Data Manager offers financial institutions automatic daily collection and storage of raw market data (such as prices, interest rates, credit spreads and volatilities). It enables daily tracking of risk factors, and supports automatic generation and storage of scenarios and derived data (e.g., bootstrapping of interest rates and implied volatility surfaces). Any market data not covered by standard processes is treated on a case-by-case basis.
- Securities Data Manager helps organizations structure financial securities by leveraging their term sheets. These term sheets are collected on a continuous basis for new issues of various financial securities, such as bonds, insurance contracts and listed derivatives. Coverage of securities includes, but is not limited to: investment funds, government bonds, corporate bonds, financial bonds (plain, equity linked and foreign exchange linked), as well as currency exposures.
- Funds Data Manager structures issued funds for financial institutions by leveraging their fact sheets. Once investment funds are structured, they are collected in the Fund Data Manager to be mapped into other solutions. This mapping utilizes a multi-exposure representation of investment funds (for example, geographical and sector breakdown, rating and duration, concentration limits, and credit exposures).
- Extended Service with Algo Simulated Data gives financial institutions the option of moving beyond the provision of standard Algo Reference Data to include Algo Simulated Data. This comprises the simulations required for valuation of securities over multiple time periods which are made available as either a binary file or a flat CSV. This helps firms reduce the costs, time and processing power otherwise needed for this computation.
- Data Validation Process help give financial institutions confidence in the consistency and quality of their data inputs, and provides a solid foundation for accurate analytics to support more effective, risk-informed decision making. This culminating process of Algorithmics Managed Data Services is specifically designed to collect required data inputs, log potential inconsistencies, allow for re-runs, highlight data integrity issues, facilitate comparison, plot differences, enable analyst intervention, and perform final validation. Data changes are tracked and saved for auditing purposes to help support compliance with internal and/or regulatory requirements.