Adrian Murray
- Pricing and reference data in the cloud has a range of benefits thanks to a direct share copy that is always up-to-date, accessible and connectable.
- One popular use case for pricing and reference data in the cloud is the creation of a security master in the cloud, resulting in a single, golden source.
- Benefits of a security master in the cloud include the ability to bring multiple data sets together, unleashing the potential for transformation
Moving pricing and reference data to the cloud can deliver significant business benefits for financial services firms, across the front, middle and back office. Adrian Murray, pricing and reference services product lead at LSEG, discusses a key use case that is often particularly transformative: shifting the security master from on-premises into the cloud. This approach has the potential to reduce operational risk while democratising data access and empowers businesses to develop analytics, automate processes and drive innovation.
Benefits of cloud-based pricing and reference data
Cloud-hosted data assets a range of benefits thanks to a direct share copy that is always up-to-date, accessible and connectable. One popular use case for cloud-enabled pricing and reference data is the creation of a security master in the cloud, resulting in a single, golden source. Establishing this centralised repository in the cloud enables firms to integrate multiple data sets, unlocking the potential for transformation.
Supporting analytics, automation, and innovation
Working with pricing and reference data in the cloud enables a range of possibilities for analytics, automation and innovation. Today, financial firms are at different stages of their cloud journeys. For firms just starting out, understanding the power of cloud-integrated data resources can help shape a cloud strategy that delivers true business value. For more advanced firms, building a security master in the cloud is one key use case that has the capacity to transform competitive ability by gaining a consistent way to view and join data from multiple sources.
Enhanced data usability and reduced complexity
Moving to cloud-based data leads to a simpler, more productive relationship with the data. For example, firms working with reference data in cloud environments such as Snowflake have a direct share copy of that data. These firms no longer need to process flat files via FTP or APIs to access or update pricing and reference data, and they no longer require the technology “plumbing” they have had to use in the past. Shifting to the cloud enables firms to remove their physical footprint, so that going forward there is no need to manage servers or upgrade physical hardware.
Furthermore, having pricing and reference data in the cloud greatly reduces the complexity of using the data. For example, updates to the data made by LSEG are immediately reflected in the direct share copy, saving firms the effort and time required for manual updates. This also means that the business can query the data in the direct share copy, leveraging the data more efficiently to generate value and shortening time to market.
Improved interoperability and usability of data
Cloud-hosted data solutions also enable greater interoperability and usability. Firms can combine reference data with other datasets, such as quantitative analytics and ESG data. Using direct share access through Snowflake provides a consistent method of accessing data and eliminates the need to build unique ETL processes for each content set.
In short, moving pricing and reference data to the cloud delivers a range of benefits, forming an essential element of a robust cloud strategy. Once established, these data assets can be incorporated into key cloud-based use cases, including the development of a security master database.
Creating a security master database in the cloud
A security master database is a centralised repository for reference data on financial instruments, including terms and conditions, corporate actions, legal entity data, security metadata, and symbology. This symbology helps create data relationships that link information within and beyond the security master database.
In the past, firms-built security masters on-premises and updated them with flat files. A cloud-based securities master can be updated automatically, using SQL queries to source the latest reference data directly from the vendor.
This “golden source” of data can be accessed by the entire firm, ensuring consistent data use across the front, middle and back office. Use cases range from back testing and portfolio management to strategy creation, risk management, compliance, clearing and settlement. A single source of data in the cloud also supports process automation, artificial intelligence integration, and efficient data governance.
Innovating through cloud-enabled data
With a security master in the cloud, firms can combine it with other LSEG data, their own internal data and third-party data in a unified cloud container. This setup enables faster, more accurate analytics, automation, and innovation, while reducing both data management costs and operational risks. Working with an experienced consulting partner to deliver reference data-based cloud projects can help firms achieve their business objectives.
No matter where a firm is on its cloud journey, integrating pricing and reference data in the cloud can be a fundamental step in transforming how data is used to support business goals and capture new opportunities.
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