Kedrios, a SIA-SSB Group company specializing in back-office products and services, IT and administration outsourcing and market data dissemination, has signed a strategic agreement with GoldenSource Corporation, a global provider of Enterprise Data Management (EDM) solutions, to provide banks, investment managers and brokers with a new service for the integrated management of financial data flows.
The new service, called "Kedrios Data Management" (KDM), will make available, on a single centralized system, an EDM solution capable of implementing customized rules and procedures for the collection, validation and comparison of data (securities and counterparties, corporate actions and prices) from different internal and external sources (data providers) used on a daily basis to support critical business processes.
The KDM service will allow users to align their data management strategy with best practice recommendations from influential trade associations such as the Enterprise Data Management Council (EDMC) and will help financial institutions maintain the product, market and customer classifications needed to meet MiFID (Markets in Financial Instruments Directive) standards.
"Kedrios Data Management" will bring significant advantages to financial operators, including the ability to reduce fragmentation and duplication of reference market data used in different business applications and to create a trusted set of data which will improve the quality of information distributed within the company, thus reducing risks and costs associated with missing, stale, or inaccurate data.
According to recent TowerGroup research (*), while failed trade rates have declined below 10% on average, inaccurate or inconsistent reference data and poor data management processes continue to play a significant role in settlement delays, accounting for nearly 60% of all failed trades. In the same research paper, TowerGroup expects that more firms will move to fully outsourced managed reference data solutions and that outcomes will be favorable from operational and economic perspectives.
Users of the KDM service will be able to focus on their core business, without the need for extensive IT and business resources, since the new service can be completely outsourced to Kedrios. The service can be configured and made available in a much reduced time frame, and customers will be charged according to usage.
"Thanks to the alliance agreement signed with GoldenSource we are able, for the first time in Italy, to provide financial institutions with a new service that can radically change their way of managing financial data and support them in their daily processes towards the final investor" - said Mario Danieli, General Manager of Kedrios - Today, industry operators need to have at their disposal efficient tools for the integration and processing of financial data flows which increasingly represent a strategic resource for all business processes, and a guarantee of transparency and customer protection."
Neill Vanlint, Managing Director EMEA, GoldenSource, added: "Kedrios is an ideal alliance partner for GoldenSource to accelerate the adoption of EDM in the Italian marketplace. The combination of GoldenSource's market-leading functionality, Kedrios' local knowledge, and its track record in operational outsourcing will deliver solutions with the time-to-market and total cost of ownership benefits the market demands. Enterprise data management has emerged as a global priority right now, and our alliance with Kedrios is further illustration of GoldenSource's commitment to key European markets."
(*) The State of Reference Data Management: Results from the 2008 TowerGroup Reference Data Survey TowerGroup (September 15, 2008)