Introduction: Simplifying Data Management with SIMS
Elequin Capital faced significant challenges with fragmented and inconsistent financial identifiers across multiple trading systems. Manual reconciliation of identifiers such as CUSIPs, ISINs, and proprietary codes led to inefficiencies, errors, and delays. To address these issues, Digital Alpha developed the Security Identifier Mapping System (SIMS), an AWS-powered solution designed to automate the mapping of financial identifiers. This solution improved data accuracy by 99%, reduced manual effort by 85%, and provided seamless scalability for Elequin’s growing operations.
The Problem
Elequin Capital encountered several key challenges:
- Fragmented Identifier Formats: Multiple trading systems used different formats for financial identifiers, causing errors and delays in trading, reporting, and analytics workflows.
- Manual Reconciliation Efforts: The process of manually reconciling identifiers was slow, error-prone, and could not keep up with the increasing volume of data.
- Scalability Limitations: Existing infrastructure lacked the ability to efficiently handle increasing data volumes and complexity in real-time.
The Solution
Digital Alpha implemented SIMS to automate the reconciliation of financial identifiers using a robust AWS infrastructure. Key features of the solution included:
- Automated Identifier Mapping: Using AWS Lambda, Digital Alpha automated the process of mapping disparate financial identifiers (e.g., CUSIP, ISIN, BBG ID) to a unified standard in real-time, significantly reducing errors.
- Centralized Data Storage: Amazon DynamoDB stored normalized data for fast and secure access across Elequin Capital’s systems.
- Scalable Workflow Orchestration: AWS Step Functions provided fault-tolerant, scalable workflows, handling increased data volumes seamlessly.
- Symbology Lookup: Integrated with Bloomberg API for symbology lookups, ensuring that financial identifiers were consistently accurate and up-to-date.
- Error Detection and Resolution: Validation mechanisms were embedded in the process to detect discrepancies and allow manual intervention when necessary.
- Web-Based Administrative Interface: A Django/React-based web interface was developed to allow administrators to manage mappings and monitor discrepancies effectively.
- Exception and Reconciliation Management: Amazon SNS notifications alerted administrators to critical system events, ensuring timely responses and smooth operations.
AWS Services Used: AWS Lambda, Amazon DynamoDB, AWS Step Functions , AWS SNS, Amazon API Gateway, AWS CloudFormation.
Technical Architecture: Automating Security Identifier Mapping
Elequin’s Security Identifier Mapping System (SIMS) leverages AWS services to provide a scalable, real-time platform for automating the mapping and management of financial identifiers.
- Centralized Data Processing: All trading system data is aggregated in a centralized database, powered by Amazon DynamoDB, ensuring efficient, low-latency access to transaction data.
- Real-Time Processing: AWS Lambda automates the mapping of financial identifiers (e.g., CUSIP, ISIN, BBG ID) to a unified identifier format (BBG ID) in real-time, significantly improving accuracy and reducing manual errors.
- Symbology Lookup: Integrated with Bloomberg API, the system performs real-time lookups of additional identifiers and updates the SIMS database, ensuring data consistency and accuracy across all systems.
- Scalable Orchestration: AWS Step Functions orchestrates the workflow, ensuring fault tolerance and scalability, even as data volumes grow.
- Exception and Error Management: Amazon SNS provides real-time notifications to administrators about critical events, such as discrepancies in identifier mappings, enabling quick responses and system integrity.
- Administrative Interface: Built with Django/React, the web interface allows administrators to efficiently manage mappings, monitor data, and resolve discrepancies.
- API Integration: Amazon API Gateway enables seamless communication between the front-end application and the back-end database, ensuring data consistency and secure interactions.
Results
The implementation of SIMS delivered measurable benefits for Elequin Capital:
- 99% Accuracy: Automated mapping reduced errors in trading and reporting workflows, improving data quality.
- 85% Efficiency Improvement: By eliminating manual reconciliation efforts, Elequin was able to reallocate resources to more strategic tasks.
- Enhanced Scalability: The AWS-powered solution seamlessly handled growing data volumes, allowing Elequin to scale without performance degradation.
- Faster Decision-Making: Consistent, high-quality data enabled timely, reliable insights for Elequin’s trading and compliance teams.
Conclusion
The implementation of SIMS, powered by AWS, streamlined Elequin Capital’s data management processes, reduced errors, and enhanced operational efficiency. By automating the reconciliation of financial identifiers and leveraging scalable architecture, Elequin positioned itself for long-term growth and operational success.
Next Steps: Transform Your Operations with Digital Alpha
If your organization is looking to streamline financial workflows, automate document processing, or enhance system integration, Digital Alpha can help. Contact us today to learn how our AWS-powered solutions can transform your operations.
Contact Us:
- Email: engage@digital-alpha.com
- Phone: +1 609-759-1367