Xenomorph TimeScape Implementation Enables Flexible Data Integration at Insight Investment

by Carla Mangado

Software vendor Xenomorph's implementation of data management and pricing system TimeScape has enabled Insight Investment, the asset manager of the Halifax and Bank of Scotland group, to merge the IT systems and business processes of the three organizations while maintaining existing business operations, Inside Reference Data has learned.

Insight Investment, which has more than £119 billion in assets under management, required an end-to-end system that would allow it to cope with any type of derivatives and build a platform able to handle a large amount of complex products. This was essential to develop the derivatives capabilities needed for the firm's Liability Driven Investment (LDI) platform.

TimeScape now enables the firm to store all its data in one platform with a flexible data model, allowing it to add new pricing models when needed and ensuring a high level of transparency in the entire process - including the movement of large quantities of data in and out of the system.

The platform facilitates centralized access to security data and pricing analytics. London-based Brian Sentance, chief executive at data management system provider Xenomorph, says: "It is primarily about transparency and consistency of pricing and valuation, in addition to managing the data. Imagine a reference data management project is done well, delivering really high quality and complete data - the benefits of this are lost if this "good" data is not connected up to consistent and transparent analytics, and the valuations data generated fed back into the data management system. Dealing with core reference data, such as terms and conditions, is only part of the problem, and with increased focus on risk management transparency and consistency in both, (a combined view of) data and analytics is vital."

The move has also allowed the firm to reduce costs, as the platform doesn't require vendor support for new instruments or models and increases straight-through processing (STP), guaranteeing coverage of any over-the-counter type as it contains the full golden copy data for each OTC instrument.

The service currently includes OTC positions across 25 product flavors, including long-dated IR, IPD, variance, index linked and credit default swaps, swaptions, and equity and FX derivatives.

The project began in December 2004 and the initial implementation was completed in six months. Insight has recently significantly expanded the number of licensed users.

When selecting the platform, Insight particularly liked the flexible tool-kit approach and speed as the firm needed a system that could keep up with its changing demands.

View the article on the Inside Reference Data website.