Industry models for enterprise data management in financial markets
by J. G. Carney
The subprime credit crisis of 2007 and the ensuing liquidity crisis in
global financial markets highlighted weaknesses in the risk
management processes and the information technology infrastructure
of many financial market organizations. There are various
dimensions to this, but underpinning many of the issues that have
arisen is a failure to manage critical data pertaining to financial
instruments, counterparties, and liquidity in an integrated and
readily accessible fashion. To address this, various industry bodies,
vendors, and financial institutions have considered the adoption of
industry data models and classification standards for financial
instruments and other business entities. In this paper, we describe the
industry models that IBM has developed for the financial market
industry for this purpose. We illustrate how these models can be used
to successfully underpin an enterprise data management (EDM)
infrastructure in a financial market organization, thereby addressing
some of the key issues arising from the crisis as they pertain to the
integrity and management of critical enterprise data. We draw
comparisons to related EDM technologies and to the data
standardization efforts of the EDM Council, a leading industry body
for the financial market industry.
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