What is a Security Master System?
What is a security master?
In the finance world data accuracy is crucial for businesses to succeed. And it is important to have continuous access to this information, especially since financial organizations rely on precise data in order to expand and function efficiently. This is where a security master comes into play.
A security master, which is also referred to as a securities master, is a powerful database that is used by financial markets to safely store an assortment of vital reference data and instruments. Financial markets and businesses may use a security master to store accurate information regarding fundamental, transactional, and pricing data. The powerful tool can also be easily accessed by users across an entire enterprise. Having this type of financial data solution is not only beneficial, but it allows a company to flourish and perform properly.
What kind of data is mastered?
There are several types of asset classes that can be mastered. A company may need to master instruments such as equities, derivatives, bonds, currencies, interest rates, equity options, mutual funds, indices, and credit securities. This array of data needs to be mastered because the strategy improves operational processes, optimizes the company's resources, and reduces overall costs. And now, storing and sharing this range of data can be done without difficulty through the help of a securities master.
Who uses a security master?
Financial markets and a mixture of organizations typically utilize a security master database. And any business that incorporates this financial tool into their infrastructure will gain an immediate competitive edge. Many business risks can unfold without the assistance of a security master. For example, inconsistent information can be transmitted, large expenses can occur, and duplications within systems can take place. That is why financial markets rely on this type of database, it’s the solution to a lot of business challenges.
Benefits
Financial markets may utilize a securities master for a variety of beneficial reasons. The first reason is in regard to risk management. For example, businesses will be able to reduce operational risks and assess potential threats. The second benefit is the trade execution element. Meaning companies can reduce execution costs, trade failures, and capital expenditures efficiently. The third benefit is the positive client experience outcome. For instance, using this database can enhance the overall client experience and increase your employees' productivity. The fourth benefit of having a security master is that it can improve an enterprise's profitability and segmentation factors. This tool leads to accurate and smooth decision making, and all financial markets should standardize their reference data with a security master for stronger operational results.
Using Intrinio’s security master data
Intrinio is known for providing high-quality financial market data. Our state of the art security master is centered around Bloomberg's OpenFIGI symbology, and “each security in our database has a unique FIGI, tied to the security and exchange for which that security trades.” For more information on Intrinio’s company and security identifiers please click here, or request a consultation today and a team member will get in touch with you soon. Our data experts are here to help and find a solution for your business.
