Tracing the Data Lineage Challenge

Best Execution
By Heather McKenzie
January 22, 2018

Article reports that the regulations such as the Basel Committee on Banking Supervision’s BCBS 239, the General Data Protection Regulation (GDPR) and the US Federal Reserve’s CFO Attestation require banks to be accountable for their data sets and strengthen their risk data aggregation capabilities and reporting. As a result, financial institutions are evaluating and implementing data lineage tools in order to track data throughout the trade lifecycle more effectively.

Article quotes Varun Singhal, senior vice-president and product manager at AxiomSL who says that getting data lineage right and in an automated fashion is challenging work. In order to get it right, Varun states that an integrated and holistic approach is required. He adds that firms are working towards building a more comprehensive solution with the ability to track the financial instrument from the point of origin where the instrument was booked to the final stage where it is reported to the regulator.

Lastly, Singhal says that understanding the origin of the data, its flows and the transformations it undertakes, provides an organisation with a complete picture that ensures data integrity. For regulatory disclosure, it is critical to have the ability to quickly respond to enquiries relating to numbers on the regulatory-facing reports. Also, complying with constantly changing legislation and technology improvements requires using tools which demonstrate the impact of those changes across all systems/reports using them.

Click here to read the full article.