This paper summarises some of the key past, present and future regulatory initiatives that have prompted sell-side firms to pay closer attention to market data quality. It also looks at the workflows, system and process requirements needed to support firms’ evolving obligations when it comes to data quality.
Over the years, accounting standards bodies and banking supervisors have progressively raised the bar when it comes to market data quality, while also looking to promote greater transparency across OTC markets. In particular, regulatory definitions of data quality have evolved. Initially data was assessed in more qualitative terms. But recent rules have introduced more quantitative definitions, and in turn, placed even greater focus on the importance of data management and governance.