Chinese New Year Dinner

1. Chinese New Year Dinner Reference Data Management – presented by Andrew MacArthur of RBC Capital Markets Upper Canada Overseas Section February 20th 2013 1

2. AGENDA • Welcome Address by Chair • Talk by Andrew MacArthur of RBC Capital Markets • Dinner 2

3. Reference Data ManagementAndrew MacArthurDirector, Strategic Data Services, RBC Capital Markets 3

4. What Is Reference Data • Some qualities of reference data… • once created, relatively slowly changing • referenced from many places • often referenced via a commonly known unique identifier • errors have impacts across multiple areas • Some examples… • clients • securities • trading books

5. What Isn’t Reference Data • The dividing line can be thin, but qualities may be: • 1 instance per commercial transaction undertaken • joins to things considered reference data rather than vice-versa • will often not change once created (clumsy trader errors aside!) • Examples being: • trades • telephone calls • call reports for sales staff • cashflow information • financial statementsz

6. Why Is Managing It Hard • The unique identifiers can be inconsistent – if they exist • Securities have many identifiers – RIC, Ticker, ISIN, CUSIP • Clients are more limited – BIC, LEI, BB ID • Clients and Issuers are inconsistently treated • Identifying and applying updates • Many data sets have established industry services – Bloomberg, Thompson Reuters, S&P, Moody's • They represent issuer, but don't expand to all legal entities • Processing a change is subjective. Name change vs take over • There is no automated solution. Specialist roles are currently unavoidable. These people are as common as unicorns

7. What Happens When It Goes Wrong • External visibility • Interactions with clients may fail. The impact could vary from a minor reputation issue to a significant monetary loss • Potential risk around regulatory reporting (US Person) • Internal challenges • Many data sets have established industry services – Bloomberg, Thompson Reuters, S&P, Moody's • They represent issuer, but don't expand to all legal entities • Processing a change is subjective. Name change vs take over • There is no automated solution. Specialist roles are currently unavoidable. These people are as common as unicorns • Change initiatives become very difficult

8. Technical Strategies • Golden Source approach • Create a single platform, typically comprised of data loaders, data repository, GUI and data distribution components. • The data repository model should represent the union of all reference data required for • How to implement the strategy? • Data model – how to model current state vs target state • Back population – what are existing trusted sources and how can you measure this • As an interim state, consider data aggretation / golden copy • Before distribution, you can use the golden source/copy as a control point for enterprise data quality

9. Business Strategies • Data ownership vs data stewardship • Create a data steward. They are responsible for the process of managing the data and identifying owners • Data owners are responsible for the data content. This may be as small as a single field vs a whole data class • How to make the organisation realise the benefits • Identify the existing pain points • Inefficient data management. Duel keying (not a spelling error) • Knock on effects. Capital provision, liquidity, trading limits • Be realistic in what you can achieve • Don't over sell what you can deliver. Very few reference data strategies can be achieved unilaterally

10. Order To Chaos • Imagine an organisation where… • Every piece of important data is only created or modified only once • Where there is always an obvious and trusted source for the data you require • There is a well defined process for extending the data sources when new process require this, with associated integration and testing platforms • No one argues about what “right” looks like • Strategic change is based on a solid foundation of well defined, easily identifiable data

11. Questions • There must be some!