The OFR Factor
This month, I’ve heard industry contacts say we at Inside Reference Data are not the only ones chasing data stories. Even journalists from the mainstream press have started writing about financial information. And this is not without reason.
After President Obama signed the Dodd-Frank Wall Street Reform Act, it has become difficult to have any industry conversations without talking about the new data collection and research center that will be established, the Office of Financial Research (OFR). For the reference data industry, it is not clear what the implications will be. Market participants say they are in a wait-and-see mode and some are running internal meetings to assess the potential impact.
The consensus seems to be that the first director of the OFR will be very influential in how the centre will work in practice. Everyone wants to know who others are recommending as candidates for this position, and many suggest it would be an added benefit to have someone with industry experience, who understands the pain points (see page 1).
The main challenge for the new Office will be to convince the critics that this set-up can work at a US-level. The global financial crisis proved how the markets were very much interconnected, and there appeared to be a need to better monitor systemic risk at an international level. The question now is if there is scope for regulators to collaborate, and come up with standards and formats that can be adopted globally to at least make it easier to analyze data.
Still, some say this could be taken one step further. Basel II works as an international directive. Could we see the introduction of something similar for the purpose of collecting and analyzing data to monitor systemic risk?
Right now, it is impossible to predict how it will all pan out. The bill can be seen as pretty vague in relation to reporting requirements, and some suggest this will help give the OFR power to assess the best possible ways to implement it.
So far, it is really the vendors that seem to be the most focused on identifying opportunities. There is already recognition that data management software vendors may be able to help clients with position management, as position data is one of the data types mentioned in the Act. The expectation now is that vendors will be pushing out new and improved modules for this purpose, linking it into existing data management platforms (see page 9).
For me, the next event on the road map is a different type of link-up. Later this month, I will be going back to Norway to get married, and my colleague Carla Mangado, staff writer, Inside Reference Data, will be acting editor for the September issue. I look forward to discovering how much more mainstream the market has become by the time I return.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Regulation
Off-channel messaging (and regulators) still a massive headache for banks
Waters Wrap: Anthony wonders why US regulators are waging a war using fines, while European regulators have chosen a less draconian path.
Banks fret over vendor contracts as Dora deadline looms
Thousands of vendor contracts will need repapering to comply with EU’s new digital resilience rules
Chevron’s absence leaves questions for elusive AI regulation in US
The US Supreme Court’s decision to overturn the Chevron deference presents unique considerations for potential AI rules.
Aussie asset managers struggle to meet ‘bank-like’ collateral, margin obligations
New margin and collateral requirements imposed by UMR and its regulator, Apra, are forcing buy-side firms to find tools to help.
The costly sanctions risks hiding in your supply chain
In an age of geopolitical instability and rising fines, financial firms need to dig deep into the securities they invest in and the issuing company’s network of suppliers and associates.
Industry associations say ECB cloud guidelines clash with EU’s Dora
Responses from industry participants on the European Central Bank’s guidelines are expected in the coming weeks.
Regulators recommend Figi over Cusip, Isin for reporting in FDTA proposal
Another contentious battle in the world of identifiers pits the Figi against Cusip and the Isin, with regulators including the Fed, the SEC, and the CFTC so far backing the Figi.
US Supreme Court clips SEC’s wings with recent rulings
The Supreme Court made a host of decisions at the start of July that spell trouble for regulators—including the SEC.