Trio of Wall Street Banks Join With SmartStream for Reference Data Utility

Oct 6 2015 | 6:12pm ET

A trio of Wall Street banks have announced the launch of a joint reference data venture with SmartStream that will provide services for reference data normalization and validation across all asset classes. 
 
Goldman Sachs, JPMorgan Chase and Morgan Stanley teamed with SmartStream to create the SmartStream Reference Data Utility, informally known as Securities Product Reference Data (SPReD), and will become clients of it. 
 
The project originally began in 2014, when the three banks selected SmartStream as the service provider on SPReD, which was borne from a realization that each was individually dealing with – and spending significant capital on – vast amounts of data.
 
The service provides clients with a multi-tenanted, auditable environment for data collection, cleansing, and change management based on customized integration standards to generate a flexible, bespoke security master database, according to a SmartStream statement. Leveraging common market processes and incorporating best practices and individual controls, clients of the utility will benefit from savings and operational improvements in their consumption of instrument data across capital markets.
 
“The new Reference Data Utility is at the forefront of what really is an evolution in the industry with the achievement of processing mutualization, 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 minimized when addressing common market issues such as inconsistent data in regulatory reporting, costly trade breaks, and risk management.”
 
According to the company, the Reference Data Utility will utilize SmartStream’s data management service, which is currently the only solution to offer multi-tenant architecture, full auditing capabilities, complete market coverage, timeliness of delivery, and customer-defined sourcing proposition.
 
“We are pleased to partner with SmartStream and our industry peers on an innovative product that combines emerging technology with a common utility model,” said Julie Harris, Managing Director and head of Operations Data Quality Management at Goldman Sachs. “We believe this solution presents great value for our organization and the broader industry.”
 
“This is a great example of how our industry can partner to improve effectiveness and reduce costs,” said James Trait, Managing Director at JPMorgan Chase. “This utility will greatly improve the quality, timeliness and consistency of reference data used across our firm to better serve our clients.”
 
“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,” stated Eric Suss, Managing Director and head of Institutional Reference Data at Morgan Stanley.
 
The SmartStream Reference Data Utility operates 24/7 to support its client base from centers 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.
 
Founded in 2000, SmartStream provides technology solutions and services for middle and back-office operations for financial institutions, particularly those related to post-trade operations. The company has more than 1,500 clients worldwide, including more than 70 of the world's top 100 banks.

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