What is the Contributions monitoring Service ?
Pre-trade contributed data has come under the spotlight, brought to the fore by MiFID II and FRTB regulatory demands, which highlight the need to set standardised definitions and to create a clearly defined data strategy framework that includes contributed prices.
To address this industry issue, clients require expertise in data governance and the technical infrastructure around contributed data. CJC has launched the Contributions Monitoring Service (CMS), which helps clients improve understanding, transparency and reporting around financial pre-trade contributed data and price sensitive data. This clarity and knowledge of a firm's internal data universe helps to guide them to a stronger position to satisfy evolving global regulations.
This document aims to summarise what can be achieved by a contributed data review and why it is important to kick off a CMS project as soon as possible.
Why choose CMS ?
CJC offers a unique opportunity for banks and brokers to take control of the information they publish to the market through data vendors or via submissions to benchmark rates.
The CJC Contributions Monitoring Service (CMS) offers a range of benefits - these are opportunities which already exist but are little understood - we can help identify and exploit them. Such benefits have effects across various areas of the business, including:
- Regulatory compliance
- Risk reduction
- Cost reduction
- Commercial benefits
- Operational benefits
Make money from your data
There is a value to contributed data: clients benefit from seeing deal flow; intermediaries benefit from reselling data.
We bring a paradigm shift in how banks contribute prices and how to better leverage important rates into the data vending community.
We help identify which quality contributed data can be commercialised, as well as improving time to market of rates and pricing.
We highlight where inbound market data costs can be offset against the value of outbound data.
Get ahead of regulation
Since the LIBOR scandal broke, the world’s financial regulators have found substantive weaknesses in OTC rate-fix publishing and have warned financiers to continue to expect a zero-tolerance approach to any attempts at price manipulation.
With FRTB hot on the heels of MiFID II and BCBS239 also affecting pre-trade contributed data, can you be sure that you house is in order?
Reduce your risk
LIBOR, ISDA FX and other Energy benchmark challenges have proven that there is insufficient governance around rate publishing by banks.
Take back control
Where is your data? Who creates it? Who manages it? And more importantly, who can see it?
These questions have traditionally not been asked, but are becoming increasingly important. We are seeing a number of substantial fines from global regulators and data governance has a part to play in that.
We provide expertise to answer these questions and implement a robust and consistent methodology to help reduce reputational, operational and financial risks.
Trying to find out where all internal data sources are held will take time and cost money. We can provide a cost-effective and reliable way of identifying such sources and their publication routes. We can report on lists of inhibited, restricted or permitted names to ensure data is only viewed by authorised people and not to competitors. We can help banks regain control over their data, to lower costs, reduce throttling, increase speed and aid risk management.
Contributors of rates to third party platforms find that they are paying to contribute their data and then paying again to see that same data displayed on that vendor’s terminals. Are banks paying twice for their own data?
Speed is of the essence...
Publishing data to clients should be simple and swift. To get competitive pricing, banks need to publish ahead of their competitors. Legacy issues mean that unimportant data may be clogging the pipes, meaning that prices aren’t getting out as quickly as they should. We can fix that.
.... and so is privacy
If you’ve never examined where your data goes, which vendors are using your rates in downstream market data products, can you really know if your competitors can’t see it? Does it make sense to bundle interest rate swaps with commodities data and FX products? We can fix that too.
When you’re ready to take control of your contributed data, we’re waiting to hear from you.