FISD Online Update

August 2002
 

Table of Contents

1. September Meeting in Amsterdam
2. MDDL Version 2.0
3. MDDL Vocabulary Definitions
4. XML for Market Data Billing
5. Market Data Business Information Model
6. Nasdaq/CUSIP Enhance Mutual Fund Data
7. LSE Evaluate the Future of SEDOL
8. Progress on ASB Licensing for ISIN
9. SC4 to Address Business Entity Identification
10. Closing Price Project
11. FISD Web Site to Become Members-Only
12. FISD Daily News Brief

September General Meeting in Amsterdam

The next FISD General Meeting is scheduled for September 26-27 at Euronext Amsterdam. September 26 will be the General meeting and will focus on industry-wide issues (i.e. market fragmentation/exchange developments, reference data, STP/symbology, benchmarking, business process automation, XML/web services). September 27 will be working meetings on FISD activities (billing and reporting, MDDL, security identification/numbering). Program details to follow shortly. No registration fee for members. Sign up online.

Agenda    Registration

MDDL 2.0 Beta (Bonds) - Now Available

The Beta version of MDDL (municipal, corporate, government and agency bonds) is available via the MDDL web site. MDDL 2.0 was designed to meet the application requirements of the Bond Market Association’s Security Master Database Project. Version 2.1 will cover the information required to disseminate price, yield and accrued interest data and will be released shortly. The Vocabulary Committee has posted an integrated spreadsheet of the terms, definitions, and hierarchical structure for industry review.

MDDL 2.0 (beta Zip File)

MDDL 2.0 Vocabulary Definitions Ready for Industry Evaluation

The MDDL Vocabulary Committee has started integrating definitions into the vocabulary spreadsheet. For the moment, we are posting the spreadsheet as a separate file on MDDL.org. Very shortly we will be integrating the terms into the specification. Now is the time (before it is integrated into the spec and into 15022 data dictionary) to look at the definitions. Comments are desired. Please direct comments to Richard Robinson at Deutsche Bank (212-469-6673).

MDDL 2.0 Definitions

James Hartley Hired to Manage MDDL

FISD is pleased to announce the hiring of James Hartley (previously Senior Architect, Chief Technology Office, Reuters) to the new position of Chief Technologist, FISD. Hartley starts August 26 and will manage the MDDL specification on a full time basis.

XML for Market Data Billing

The NYSE has released a draft XML specification for vendor reporting and has asked FISD to help collect industry comment on scope, content, extensibility and implementation. The specification, called Vendor Reporting eXtensible Markup Language (VRXML), could be extended to cover additional exchanges as well as for vendor services. We are actively seeking industry reactions. For more information please contact Michael Atkin.

Market Data Business Information Model

FISD organized a three-day business process workshop around market data administration and billing issues. Out of the workshop came three detailed business process models. The Business Information Model defines the internal/external function, processes and information flows within market data administration. The Interface Model shows how shared information moves between and among the involved parties. The Workflow Model provides a cross-functional view of the processes driving market data administration.

The goal of the workshop was to establish a clear, shared understanding of the market data billing and reporting process and to identify opportunities for automation and process improvement. In addition to validating much of FISD’s previous research, the workshop participants (7 firms, 4 vendors, 2 exchanges) defined 19 core issues - or points of inefficiency -- associated with administration. FISD members are in the process of ranking these issues based on value and feasibility. The results are being viewed as our roadmap for simplifying, rationalizing and automating market data billing.

Summary of the Workshop

Nasdaq/CUSIP Enhance Mutual Fund Daily List

FISD members approached Nasdaq and S&P/CUSIP to address problems that result from discrepancies in fund family names/descriptions. The problem is that vendors manage fund data based on CUSIP while information from Nasdaq is organized by symbol/description. The difference results in a manual/error-prone process to match the CUSIP against the descriptive data in the Daily List. Three cheers for both Nasdaq and CUSIP. They listened to the problem and added CUSIP to the Daily List.

MFQS News

LSE Evaluates the Future of SEDOL

The London Stock Exchange is running out of SEDOL numbers and is preparing to convert to alphanumeric to address the problem. The move to alphanumeric characters has prompted LSE to look at extending the functionality of SEDOL to cover identification requirements needed for straight through processing including the assignment of a market level identifier for all multiply listed instruments. FISD is helping LSE test the concept with vendors and user firms. Contact Michael Hodgson at LSE (+44.207.797.1265) for more information.

Progress on ASB Licensing Agreement for ISIN

FISD members are working with the ANNA Service Bureau (ASB) to adopt a modular contract for access and usage of ISIN numbers. The modular approach promotes a core license and supports the addition of separate addenda for NNA’s that currently require additional licensing terms. FISD presented its modular concept at the ANNA General Meeting (May 30-31). The ANNA Board is in the process of reviewing the proposal and will be sending its recommendation to the Numbering Agencies shortly.

Summary of Symbology Activities

SC4 To Address Business Entity Identification Standards

Industry standard entity identifiers that create precise linkages between legal entities, subsidiaries and investment programs are required to help firms manage portfolio and enterprise-wide risk. TC68/SC4 has been asked by SWIFT to take over the standard business entity discussion. A number of proposals have been identified. SC4 is in favor of extending BIC (ISO 9362) to cover business entities of relevance to the securities industry. This issue will be addressed at the next SC4 plenary meeting (October 14-15). Scott Preiss (S&P Comstock) will head the US delegation to that meeting. Please direct your thoughts and recommendations to Scott Preiss (212-438-6560).

IBEI Summary (pages 4-6)

Closing Price and Tony Wyan

FISD is in discussions with Tony Wyan & Company to update and maintain FISD’s Closing Price database. Tony spent over 30 years with Merrill doing quality assurance with vendors, exchanges and regulators. We’ve known Tony a long time and look forward to working with him on this and other data quality projects. TW&C works with vendors and user firms on data quality issues. He and his partner, Daniel Levine, can be reached at 908-925-8656.

FISD Closing Price Project    Closing Price Database

FISD Web Site Soon to be for Members Only

The FISD Executive Committee has instructed the Association to restrict access to the value-added segments of our web site to members only. We will implement the restrictions beginning September 1. Once the restrictions are in place, FISD will adjust its publishing strategy to provide summaries of activities for the industry at large while all working documents, databases, and reports will be for members only. Notification to members on the procedures for logging into the new site will follow shortly.

FISD Daily News Brief

SIIA/FISD is teaming up with SIIA member Inlumen to provide a market data specific daily online newsletter. The daily brief will be an enhanced version of the “Market Data News” section of the FISD website and include proprietary content and other value-added features. The FISD Daily News Brief will be available to members free of charge.