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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IBM Journal of Research and Development
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06 May 2010
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