Managing Financial Information in the Trade Lifecycle
A Concise Atlas of Financial Instruments and ProcessesBy
- Martijn Groot
Information is the oxygen supply of the financial markets. Financial information, or data, is so important that companies such as Barclays and Citigroup now have executive positions of Chief Data Officer or Head of Data Acquisition. This book, by a long-time industry insider at one of the leading data management vendors, discusses the present and future of financial data management by focusing on the lifecycle of the financial instruments (stocks, bonds, options, derivatives) that generate and require data to keep the markets moving. This book is a concise reference manual of the financial information supply chain and how to maximize effectiveness and minimize cost.
Financial Operations and Information Executives in banks and investment houses, such as CIO, Head of Operations, Head of Market Data, Market Data Manager/Director
Hardbound, 288 Pages
Published: May 2008
Imprint: Academic Press
"In providing a comprehensive and rigorous survey of the processes around the financial instrument lifecycle and how it is currently served by content providers, this book covers virgin territory" --From the preface by Herbie Skeete, series editor "His approach is based on a combination of viewpoints, intersecting instrument and transaction lifecycles, and tying them together within a Supply Chain model borrowed (at least originally) from advances in Manufacturing and Operations Management. While not the only industry expert attracted to the Supply Chain approach, Martijn has done a masterful job of adapting it to the realities of Market Data practices. Here, for the first time, is a coherent descriptive framework to describe how the pieces fit together, why they need to be handled the way they are and what metrics and aspects of information quality can be used. It doesnt go into the mechanics of pricing and valuation for various instruments thats not the point here, and there are plenty of sources for information on that. There are other places where Martijn neatly draws the line, and stays focused if you need a concise overview of information management and the products and processes in the operations of the securities industry, including practical discussions related to trade-offs and legacy overhang, you now have it." --From the Foreword by Bill Nichols,Program Director of Securities Processing Automation, FISD/SIIA Managing Financial Information in the Trade Lifecycle: A Concise Atlas of Financial Instruments and Processes by Martijn Groot hits at the heart of a key industry challenge. The importance of the kind of data management processes it describes cannot be understated. Its a wonder its taken so long for institutions to finally begin to get a grip on this crucial operational issue. --Andrew Delaney, Editor-in-Chief, A-Team Group, Publisher of Reference Data Review Newsletter Its a pleasure to welcome Martijn Groots new book Managing Financial Information in the Trade Lifecycle: A Concise Atlas of Financial Instruments and Processes to the growing canon of works dedicated to the business and technology of market data. It offers instructors a source for courseware, and practitioners a means of enhancing their skill sets. Groots book joins Marc Alvarez Market Data Explained as essential items in the market data professionals library. -- R. Tee Williams, Principal and Head of Financial Industries Training, Tee Williams Associates An excellent primer on one of the most important challenges effective data management facing the financial services industry today. The book provides a succinct business process framework in which to understand the variety of data types, sources and content that comprise securities trading." -- Ayesha Khanna, author of Straight Through Processing for Financial Services "The world of financial market data is awash in the use of specialist jargon and metaphors that fall short of describing the sophistication and complexity of the domain. Refreshingly, Martijn Groot undertakes to consolidate these issues, viewing them as parts of a single supply chain across the many uses of data content within financial firms and across the industry. Any firm looking to invest in their data management and supply infrastructure should start here in order to understand fully both the scope of the data management landscape as well as the industry context. Every CTO or CIO will be well served by keeping a copy on their bookshelf." -- Marc Alvarez, author of Market Data Explained: A Practical Guide to Global Capital Markets Information Managing Financial Information in the Trade Lifecycle discusses the present and future of financial data management by focusing on the lifecycle of the financial instruments (stocks, bonds, options, derivatives) that generate and require data to keep the markets moving. This book is a concise reference manual of the financial information supply chain and how to maximize effectiveness and minimize cost. Martijn Groot is Director of Product Marketing at Asset Control, the market leading provider of Centralized Data Management (CDM) solutions to buy- and sell-side firms and market infrastructure companies around the globe.
- 1. The changing financial services landscape1.1 Introduction1.2 Historical perspective and current industry landscape1.3 The instrument lifecycle1.4 The transaction lifecycle1.5 The information supply chain1.6 Flow and bespoke business models1.7 The typical information architecture1.8 Consequences and costs1.9 Conclusion2. The instrument lifecycle: the life and times of financial instruments.2.1 Introduction2.2 Enter the protagonist: the financial instrument2.3 Types of financial products2.4 Financial markets2.5 A birth of a financial instrument the process2.6 Describing a financial instrument2.7 Active life of financial instruments corporate actions2.8 Dependencies between instruments2.9 Ups and downs throughout an instruments life.2.10 The demise of a financial instrument2.11 Conclusions3. The information supply chain: overview of the financial content market3.1 Introduction3.2 Overview of the content market and its changing dynamics3.3 Who are the data sellers?3.4 The Information Supply Chain3.5 Different types of content3.6 Licensing and contract management.3.7 Sourcing and dissemination information internally: technical perspective3.8 Conclusions4 Information needs in the transaction lifecycle4.1 Introduction4.2 The information manufacturing business: basic versus derived data4.3 The transaction Lifecycle4.4 Processes under scrutiny: regulation and audit4.5 Use cases4.6 Conclusions5. Tying it together: metrics and criteria for success in infrastructure5.1 Introduction5.2 The information entropy situation5.3 Aspects of information quality5.3 The content manufacturing process5.4 The wholesale versus the retail transaction model5.5 Quality metrics: information management KPIs and their SLA context5.6 Wholesale versus retail: what constitutes success in process and content management?5.7 Conclusion6. Conclusion