Data Standards Bring Value, Say SIA Panels

14 June 2004

Industry experts discussed the status of standards in research and reference data at two SIA show panels last week.

Despite challenges, they say that both efforts are moving along, as a push for transparency in the financial markets is driving the industry to implement standards in the most timely and efficient way possible.

Adoption of research distribution standard RIXML is slowly increasing as it draws support from around the world, panelists said. The UK Financial Services Authority has been aggressively working with European research contributors to further implement RIXML by year end.

And according to Richard Bell, sales director of South African IT solutions company Peresys, RIXML has been 75 percent implemented on the buy side in South Africa, and 70 percent implemented on the sell side.

But in the US, things are moving along much more slowly. Bell says the sell side in the US is very large, and industry-wide conversion to RIXML is a big ship to turn, not to mention costly. However, he says people are spending money on this and the industry is moving in the right direction. Still, it may take up to five or six years for complete adoption, says Bell.

According to the panel, the RIXML consortium has separated the implementation of RIXML into phases. Phase one is looking at research providers. Phase two is looking at transparency in corporate disclosure. Last is assessing the mutual fund market in terms of disclosure and transparency.

Other participants in the panel were Charles Gepp of Reuters America; Anne Lepre of Bloomberg; and Scott Rosen of Thomson Financial. Ellen Callahan, director of equity content management at Fidelity Investments, moderated.

On the reference data front, regulators have most recently raised red flags about T+1, discussing risk mitigation and the challenges met with facing regulatory requirements. With T+1, the regulatory landscape has changed, and one of the difficulties facing the industry is getting those involved to admit a change is needed.

The reference data industry is also faced with the need to get mobilized and standardized in an efficient manner. The industry is addressing these issues by focusing on such things as requirements for instrument identification.

The industry is also addressing a standard for the distribution of reference data, most likely incorporating XML. Experts say it is a popular, cohesive solution for reference data.

Mike Atkin of the FISD moderated the panel, which also included John Bottega of Credit Suisse First Boston; James Hartley of the FISD; Eric Livingston of Foliage Software Systems; and John White of State Street Global Advisors.

Source: Inside Market Data