Pricing and reference data in the cloud: fuelling opportunity today

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Financial services firms are increasingly moving pricing and reference data to the cloud to streamline operations, reduce risk and enhance data access. Adrian Murray of LSEG Data & Analytics explores how a cloud-based security master can transform data management, analytics, automation and innovation across the enterprise

Adrian Murray, LSEG Data & Analytics

Moving pricing and reference data to the cloud can deliver significant business benefits to financial services firms across the front, middle and back offices. Adrian Murray, pricing and reference services product lead at LSEG, discusses a key use case that is often transformative: shifting the security master from on-premises to the cloud. This approach has the potential to reduce operational risk while democratising data access and empowering businesses to develop analytics, automate processes and drive innovation.

The benefits of cloud-based pricing and reference data

Cloud-hosted data assets provide a range of benefits thanks to a direct-share copy that is always up to date, accessible and connectable. One popular use case for cloud-enabled pricing and reference data is the creation of a security master in the cloud, resulting in a single ‘golden source’. Establishing this centralised repository in the cloud enables firms to integrate multiple datasets, unlocking the potential for transformation.

Supporting analytics, automation and innovation

Working with pricing and reference data in the cloud enables a range of possibilities for analytics, automation and innovation. Today, financial firms are at different stages of their cloud journeys. For firms just starting out, understanding the power of cloud-integrated data resources can help shape a cloud strategy that delivers true business value. For more advanced firms, building a security master in the cloud is one key use case that has the capacity to transform their competitive ability by gaining a consistent way to view and comingle data from multiple sources.

Enhanced data usability and reduced complexity

Moving to cloud-based data leads to a simpler, more productive relationship with the data. For example, firms working with reference data in cloud environments such as Snowflake have a direct-share copy of that data. These firms no longer need to process flat files via file transfer protocol or application programming interfaces to access or update pricing and reference data, and they no longer require the technology ‘plumbing’ used in the past. Shifting to the cloud enables firms to remove their physical footprints so that, going forward, there is no longer a need to manage servers or upgrade physical hardware.

Furthermore, having pricing and reference data in the cloud greatly reduces the complexity of using it. For example, updates to the data made by LSEG are reflected in the direct-share copy, saving firms the time and effort required for manual updates. This also means the business can query the data in the direct-share copy, leveraging the data more efficiently to generate value.

Improved interoperability and usability of data

Cloud-hosted data solutions also enable greater interoperability and usability. Firms can combine reference data with other datasets, such as quantitative analytics and environmental, social and governance data. Using direct-share access through Snowflake provides a consistent method of accessing data and eliminates the need to build unique extract, transform and load processes for each content set.

In short, moving pricing and reference data to the cloud delivers a range of benefits, forming an essential element of a robust cloud strategy. Once established, these data assets can be incorporated into key cloud-based use cases, including the development of a security master database.

Creating a security master database in the cloud

A security master database is a centralised repository for reference data on financial instruments, including terms and conditions, corporate actions, legal entity data, security metadata and symbology. Symbology helps create data relationships that link information within and beyond the security master database.

In the past, firms built security masters on-premise and updated them with flat files. A cloud-based securities master can be updated automatically, using structured query language queries to source the latest reference data directly from the vendor.

This golden source of data can be accessed by the entire firm, ensuring consistent data use across the front, middle and back offices. Use cases range from backtesting and portfolio management to strategy creation, risk management, compliance, clearing and settlement. A single source of data in the cloud also supports process automation, artificial intelligence integration and efficient data governance.

Innovating through cloud-enabled data

With a security master in the cloud, firms can combine pricing and reference data with other LSEG data, their own internal data and third-party data in a unified cloud container. This setup enables faster, more accurate analytics, automation and innovation, while reducing data management costs and operational risks. Working with an experienced consulting partner to deliver reference data-based cloud projects can help firms achieve their business objectives. 

Conclusion

No matter where a firm is on its cloud journey, integrating pricing and reference data in the cloud can be a fundamental step in transforming how that data is used to support business goals and capture new opportunities.

 

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