The new Data Services and Analytics team will help Euronext Securities realise its ambitions to become more data-driven and capitalise on data to offer customers more value-added data services.
Over the past few years, datamining and analytics have become one of the most prominent trends in the financial services arena. Data-driven insights play a key role in making decisions and understanding market and investor behaviour, and more CSDs are realising their untapped data potential.
Christian Viken, Executive Vice President and Head of Customer Experience and Analytics at Euronext Securities Oslo, explains:
Euronext’s network of CSDs holds a unique data set with millions of private and institutional investors, divided over 4.5 million securities accounts with aggregated assets under custody of EUR 6 bilion
“With our new Data Services Team, we will be able to prioritise developing ancillary services based on our data, so we can deliver new value-adding products to existing and new customers alike.”
Moving from data governance to advanced analytics
In addition to developing value-added services, Euronext Securities will focus on scaling these services – expanding them from a local product offering through one CSD to a cross-border offering across all Euronext CSDs and opening the services to more customers and markets than is the case today. “Traditionally, our CSDs have been part of their local market infrastructure and have typically worked with a limited customer base,” Christian Viken says. “Now, we’re broadening our approach and partnering with data providers, fintech and other companies who wouldn’t traditionally be customers of a CSD.”
The new team is a part of a larger, five-year data services strategy, which Euronext Securities initiated in 2018. The strategy’s initial phases covered data governance, structure and visualisation, and the company has now entered the product development and data distribution phases, where Euronext Securities is actively bringing new products to market and creating new channels for distributing data to new and existing customers. The final phase is to develop a Euronext Securities data hub, which will leverage advanced analytics to help customers use available data more effectively.
The first data products will focus on settlement data and reports, covering areas like settlement fail trades and predictions, penalty data, efficiency and liquidity. “With all the recent regulations targeting settlement efficiency, we can see that this area is top-of-mind for our customers,” states Christian Viken. “They’re asking us if we can develop solutions that can strengthen the monitoring of settlement processes and take the most time-consuming pain points within the process and make them more efficient.”
Leveraging the power of a diverse CSD network
Creating a cross-CSD data services team and a harmonised product portfolio enables Euronext Securities to capitalise on the strengths and competencies each Euronext CSD has to offer. For example, Euronext Securities Oslo has considerable experience in commercialising data products, such as TradeLog, which streamlines the monitoring of employees’ personal trading activity through electronic pre-clearance, screening list capabilities and automated rule checking. TradeLog has been a tremendous success in Norway and is now one of the first products to be expanded across all Euronext CSDs, starting in Denmark. Transaction Monitoring – a digital web solution that enables customers to monitor transactions across their entire investor base – is another example of a data service product initially offered in Euronext Securities Oslo and now in the process of being rolled out in Denmark.
And central to harmonising the entire data services product portfolio is the technical expertise that Euronext Securities Milan brings to the table, as Christian Viken points out. “All of the settlement products that we are now bringing to market were created in Euronext Securities Milan,” he says. “They have a mature infrastructure and understanding of the applications we need to develop our data services products, including AI, machine learning and advanced data technology, not to mention their partnership with universities offering Data Science master’s programmes.”
This combination of commercial experience, infrastructure and IT prowess provides an excellent foundation for creating innovative data services. And this innovation, as Christian Viken sees it, is an essential ingredient for growth.
Data is one of the most valuable assets that any company holds, and we have made significant strides in turning our data into added-value services that will help our customers work more efficiently and make better decisions. We look forward to bringing our data services portfolio to new and existing customers in all Euronext Securities’ markets.
The Euronext Securities data strategy is aligned with the overall Euronext strategy for data services.
Christian Alexander Viken
Head of Data & Analytics