Inside Reference Data magazine in article “Transparent Demands” by Michael Shashoua refers to our opinion on using Resource Oriented Architecture to combat data silos and achieve greater data transparency. Subscription is required to read but free trial is available or see the snippet below.
Dismantling Data Silos
Services such as Bloomberg’s BVAL, launched about two years ago, and others emulating BVAL’s capabilities are proving beneficial to buy-side firms to save time, meet regulatory requirements for pricing data and generally do their jobs, according to Smith.
The more sources end-users have, especially from individuals trading the security in question, the greater likelihood of getting transparent and vetted prices, he explains. “If you have a whole bunch of dealers who trade a security, and you can get them all in one spot, in real time or at least a couple times a day, you’ll have a much better idea and more confidence where that’s trading,” says Smith. “Some vendors are better than others at it.”
However, with multiple sources, data silos present an obstacle to achieving transparency, according to Victor Olex, founder and president of VT.Enterprise, a Jersey City, N.J.-based provider of financial industry technology. Data-sharing methods including extract-transform-load processes (ETL), service-oriented architecture (SOA) and data warehousing all fail to address the problems created by silos, adds Olex.
VT.Enterprise uses “resource-oriented architecture” (ROA) which allows data to remain in a user’s original systems while offering a central, on-demand and uniform access mechanism to all data stores, in interoperable fashion, under standard data formats, according to Olex.