Drawing upon the first edition of this newsletter which entailed key design principles to achieve an optimal data architecture, “keeping data unbiased” and enabling “malleability” become particularly relevant in the context of liquidity reporting. Liquidity is one area that demands reporting often right down to the transaction level. At the same time, different regulations demand different classifications of assets and liabilities. In order to do this, it is essential to have all the data and a parameterizable framework that allows for the appropriate classification of data.
Hence, the framework promotes malleability which essentially means that with the same base data, different classifications are built to meet different reporting use cases.
Third and equally important is providing users access to the data albeit in a controlled environment. This will aid the users to make adjustments to specific attributes of a transaction governed by a review mechanism and audit trail. This in turn improves user trust and confidence both in the data and in the final report.
Also, there is greater control on accuracy of submissions from day 1, despite source system data quality issues which would typically take longer to correct.