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Zurich-based reference data vendor SIX Telekurs launched the latest release of its Valordata Feed (VDF) in July 2010. For the new version, SIX Telekurs has completely restructured the way it presents financial instrument underlyings, as well as redemption and interest terms. As a result of this restructuring, existing VDF clients are now faced with a considerable amount of reprogramming to their VDF loaders, for both this and future releases.  AIM Software provides a fully-maintained VDF interface to banks and financial institutions. By implementing VDF in conjunction with AIM Software’s GAIN reference data platform, SIX Telekurs clients can therefore avoid having  to perform these regular reconfigurations.

The new VDF release
The new release of SIX Telekurs’ VDF (01/2010), available from July 2010, contains the most significant structural changes since the data feed was first launched. Below is a short overview of the most important changes:

• Implementation of the new concepts  ’Underlying’ and ‘Redemption/Interest terms’
• Comprehensive structural extensions in various VDF message types
• Fundamental changes in the message logic and the cash flow philosophy of derivative instruments.
  
  

The new VDF underlying concept
The greatest challenges with this new release come from the new method for presenting underlying data.  The main shortcoming of the old model was that it was  not possible to identify underlyings directly—the actual underlying could only be identified after the interpretation of the components in the message type TKXUD ‘Underlying’ by using the artificial ‘Underlying ID’ that was delivered in the TKXRD message. SIX Telekurs’ new underlying concept allows the underlying to be referenced at instrument level, making it considerably easier to access, and answering a clear market  need. The  message type TKFQD ’Instrument Composition’ is now used to deliver the underlying composition information. In addition, a large number of new attributes make the interpretation of relevant underlying information easier.

Old VDF underlying concept

New underlying concept

New release brings challenges
These substantial changes to the messaging logic and the subsequent modification of the metadata mean that all VDF loaders currently being used by financial institutions to import VDF data into banking applications need to be reconfigured. Depending on how deep into  the VDF metadata structure an implementation goes, it is possible that whole pieces of the existing loader will need to be replaced. This can be very cumbersome.  Furthermore, SIX Telekurs will continue to release VDF updates in the future, which depending on the scope and depth of the update will very likely require further reconfiguration by the client.
Partnership with the SIX Group and Rolotec
AIM Software has worked closely with the SIX Group for many years and is a Level 3 SIX Telekurs partner. For the past year, AIM Software has also had a partnership with Rolotec, a subsidiary of the SIX Group, which specializes in individual software solutions and data integration. AIM Software therefore has a strong insight into the SIX Group’s technologies and products, and has access to a large number of VDF specialists. Thanks to these partnerships, AIM Software is able to offer banks and financial institutions a solution that enables their VDF consumers to easily process securities data and to avoid heavy maintenance work.

Fully-maintained GAIN | VDF interface
AIM Software has many years’ experience loading and exporting VDF data, which means the firm is well- positioned to help VDF clients deal with the challenges associated with this new release. By implementing the fully maintained GAIN | VDF interface, developed in close cooperation with SIX Telekurs, clients can avoid carrying out the required reprogramming themselves. New updates can be rolled out quickly thanks to the tight integration between the GAIN | VDF interface and the VDF metadata. Metadata are structured data that describe the VDF data. GAIN is able to read these metadata and understand the VDF data intuitively, which means that usually only minimal changes to the loader are required. Customers will be informed by AIM Software of up-coming new VDF releases and will receive any necessary updates cost-free as part of their maintenance  agreement.

GAIN—a comprehensive reference data platform
GAIN Data Management is a comprehensive reference data management platform with 108 references worldwide. GAIN Data Management imports, selects, normalizes and validates financial data before they can be exported into the desired target system. With its modular configuration, GAIN can be customized to specific client needs and the client pays only for the functions used. GAIN deployments can range from a simple, single-feed straight-through processing system  to a multi-source, multi-entity security master file.  Clients can rely on fully maintained interfaces, which relieve them of the need to perform cumbersome reconfiguration work for the import and export of data.