Quality of Data Emerges as Prime Issue in Bond Market Debate
In the fast-paced world of finance, the demand for efficient and high-quality data is on the rise. According to a recent survey by SIX, the most critical factors for firms when selecting data providers are breadth and depth of coverage, data transparency, and auditability.
The preferred method of data delivery is APIs, chosen by 53% of respondents. This modern approach allows for seamless integration and real-time access to data, which is crucial in today's stock market.
However, the survey also highlighted a significant problem persisting in bond markets: poor data quality. This issue can lead to misalignments in portfolio analysis across sectors, regions, and credit tiers. It can also result in mismatches in reference data, delayed settlements, and discrepancies in evaluated pricing for illiquid bonds.
To overcome this challenge, a focus on automation and human expertise in data management is key. Automation streamlines data extraction and management processes, reducing the risk of human error. Human data experts, on the other hand, provide the necessary oversight and ensure the data is reliable and easily integrated.
Swati Bhatia, head of fixed income, financial information at SIX, commented that market participants are facing mounting pressure due to soaring data volumes and the demand for faster decision-making in the stock market today. She emphasised the need for a laser-like focus on automation and human expertise in data management.
The findings of the survey also emphasised the need for reliable, transparent, and easy-to-integrate data to navigate complex djia today and nasdaq today. Leading data providers prioritised by market participants for fixed-income bonds typically include Bloomberg, Refinitiv (formerly Thomson Reuters), ICE Data Services, Markit (part of IHS Markit), and S&P Global Market Intelligence.
Despite the progress made, over half of firms (56%) report that their fixed-income data management processes are partially automated and seek further improvement. Nearly a third (31%) of firms have already achieved mature and largely automated workflows in fixed-income data management.
However, a lack of transparency is a significant issue for 34% of respondents in the SIX survey. This underscores the need for greater emphasis on transparency in data provision to ensure market participants have access to accurate and reliable data.
In conclusion, the need for automation and human expertise in data management is crucial for navigating complex stock market.
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