Fixed income reference data today
Trusted reference data for financial securities is critical for the efficient workings of the financial services industry––for investment decisions, trading and post-trade settlement, and portfolio management and processing. However, this critical reference data is derived from unstructured regulatory filings such as bond prospectuses. The industry relies on large data vendors who convert unstructured textual information into machine-readable data. Not only are these data sources expensive and restricted by the vendors who own the IP, but oftentimes, data files contain errors that customers must identify and correct themselves. Customers rarely send these corrections back to the vendor, leaving countless others across the industry to find and correct the same errors on their own.
The TruSet Solution
TruSet is harnessing blockchain technology to rethink data management, lower the cost of ownership, and remove pain points for the industry. The TruSet workflow will free the data usage restrictions and create an accurate and trusted machine-readable data source that will serve as a shared source of truth for powering the industry. Our reference data solution is a blockchain-based marketplace in which the participants crowdsource the creation, error correction, and maintenance of fixed income reference data.
Community-owned data. The blockchain network takes the place of the traditional reference data vendors, consolidating the reference data generated by the data producers into a structured data model. The data is community-generated and community-owned, freeing it from vendor IP ownership and usage restrictions.
Crowdsourced error correction. The blockchain’s consensus mechanism enables marketplace participants to collectively identify and correct errors. Errors are corrected once for everyone.
Golden Record. Once the network has reached consensus that a reference data record is correct, it is recorded in the blockchain as an immutable, accurate, and trusted “Golden Record” of machine-readable data. A full audit trail of all changes over time is available.
Shared access. Every TruSet user can access the set of trusted, accurate records they need and feed it into their automated processes via APIs.
Rewards. Participants who publish and validate data are rewarded for contributing to the growth and maintenance of fixed income reference data.
Every customer of fixed income reference data, from large financial institutions to fintech startups, stands to benefit from the lower total cost of ownership, reduced usage restrictions, and more accurate data provided by the TruSet marketplace. These customers include global and regional banks, custodian banks, fund administrators, asset managers, risk analytics providers, fintech companies, and regulators. Marketplace participants may choose to simply consume the data already validated by the community, or become contributors who not only consume data, but help generate, validate, and maintain it.