Jun 5 2009

Market Data & Reference Data

Market Data:

Data associated with securities, financial directives, investment instruments, and currency is known as market data referred as real time price data. Market data is highly time sensitive data, used by traders, investors or broadly speaking all users, involved in securities’ transactions.

Information related to equity or stock that is available on trading desk can be classified as equity market data. High level view defines market data as a composition of quote data and trade data.

market-data1

 

Reference Data:

Data that is used to define properties with reference to some deal, transaction or a company is called reference data. Reference data is static in nature hence it does not change with the time, like company name, business address, tax identifier, ticker symbol, share holder information, regulatory information etc.

When we co-relate Market data to Reference data, we talk about pricing data of a security that is trading on a stock exchange and reference data defines properties of that particular security, i.e. Ticker, Stock exchange, Name and address of the issuer, corporate actions etc.

Relationship between Market data and Reference data:

market-data21

 

 Why Reference Data is key element?

Though reference data is static in nature but it is very essential to keep it updated. It defines the exposure of the security business. Financial institutions like to see this information in order to identify the risk and future business options.

For more details about Reference data and need of Reference data please visit http://creditdimensions.com

1 Comments on this post

  1. versetty said:

    Thank you. I am pleased to read your article.

    July 12th, 2009 at 3:18 am

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