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How can alternative datasets help your business? How does consensus data differ from credit institutions, Credit Benchmark provides a unique view on
Agents ratings provided by the CRAs? counterpart creditworthiness. Credit Benchmark data can
For those who are responsible for understanding and be delivered securely into your proprietary or industry-
communicating counterpart exposures within a firm or to Leverage a unique, new data set to remain Coverage: Alternative datasets can offer a standard systems to bring efficiencies and automation
clients, new, alternative consensus datasets can improve competitive in a changing landscape complimentary opinion to CRAs for rated entities as to your workflow and benefits to you and your clients.
understanding and decision-making. well as greater visibility into the larger unrated universe For more information visit www.creditbenchmark.com
Assist in your regulatory compliance
Knowing your counterpart (KYC) is essential and with SFTR by better understanding the Risk Aligned: Consensus datasets sourced from lender About the Author
knowing your counterpart’s creditworthiness (KYCC) is creditworthiness of your supply financial institutions are based on internal opinions that
a critical part of KYC. have actual exposure to a given counterpart - “skin in Mark has an established track record in bringing
Add and automatically monitor additional, non- the game” versus “issuer pays” transparency to rapidly-developing areas of financial
Because of the sheer number of counterparts involved traditional counterparts to your borrower list services. Alongside his business partner Donal Smith,
in securities finance, upcoming regulatory changes, and Dynamic: Consensus datasets are frequently updated, he co-founded Credit Benchmark in 2013, introducing
capital implications of the transactions, securities finance Enhance your reporting and risk management with credit transitions continuously under review the world’s most comprehensive source of consensus
participants can benefit from consensus data in the capabilities - providing transparency to your clients by expert teams credit risk data. In 1994, Mark spotted an opportunity
following ways: to provide customers in the securities financing industry
Respond to the ongoing ‘Peer to Peer’ challenges Forward-looking: Clear directionality trends and early with independent specialist advice and services. The
and make them opportunities for your business warning of changes in credit quality status company he founded, Data Explorers, became the leading
provider of securities lending data across all global market
Position your organisation for the development Summary sectors, and was acquired by IHS Markit in 2012. Mark
Beneficial Owners
of new paradigms – e.g. Agency Prime or graduated from the London School of Economics and
Lending directly or via Agents, consensus Enhanced Custody The Securities Finance Industry and its participants find held management roles at LM Moneybrokers, Goldman
data can support your activities beyond themselves at the epicenter of an almost ‘perfect storm’. Sachs and Lehman Brothers.
current limitations Whether your organization is a Principal Beneficial Owner,
Principal Borrowers an Agent Lender, a Broker Dealer, Prime Broker or Hedge In 2004 Mark wrote “An Introduction to Securities Lending”
Inform and expand counterpart selection Fund, or plays multiple roles, this ‘storm’ impacts your It was Commissioned by International Securities Lending
process, including hitherto unrated non- As Capital Markets continue to evolve, the business significantly. Increased regulation, higher capital Association and Endorsed by Association of Corporate
traditional counterparts creative application of data provides a requirements, and pressures to reduce costs are creating Treasurers; British Bankers’ Association; The London
competitive edge a challenging environment in which to conduct business. Stock Exchange’ National Association of Pension Funds
Explore the opportunities of Peer and The Securities Lending and Repo Committee.
to Peer lending confidently from a Speed up your onboarding process so that you These factors, combined with demands to improve
position of knowledge do not miss out on borrowing opportunities process efficiency and meet client demand for more up The booklet was subsequently translated into many
to date information have coalesced to force behavioral languages and remains accessible for free on
Automatically monitor your counterparts’ Optimize management of capital and change – an evolution that is necessary, and no longer numerous websites.
creditworthiness – be alerted to RWAs and address the shortcomings of the optional. In an industry with so many hitherto unrated
changes as they happen legacy ALD process counterparts within it, the availability of more credible
alternative data sources to assist in understanding a
Commission your own ‘Comparative Allocate balances and balance sheet where it counterpart’s creditworthiness is a valuable addition to
Credit Assessment’ to expand business makes most commercial sense the marketplace.
opportunities and counterparts
Prepare for the world of ‘smart buckets’ About Credit Benchmark
Speed up your Know Your Counterpart and SFTR and leverage existing market
(KYC) and Operational Due Diligence (ODD) initiatives and benchmarks Credit Benchmark is the world’s most comprehensive
onboarding processes source of consensus risk data on 50,000 + entities, more Mark Faulkner,
Expand collateral possibilities into than 75% of which are unrated by the Credit Rating Co-Founder,
areas such as ETFs Agencies (CRAs). By aggregating and anonymizing Credit Benchmark
credit data from 40+ of the world’s leading financial
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