Data-hungry regulations push StanChart to invest in data mining

Standard Charted is building a repository to host all of its trade data, aiming to create a “single golden source”. The bank plans to use the data to improve its ability to model illiquid products in preparation for the impending market risk capital rules that penalise firms for patchy liquidity and incomplete trade data. The firm is also developing algorithms that use historical data to create synthetic time series for use where products suffer from a liquidity gap. 

Standard Chartered is turning to data mining techniques in a bid to bolster its ability to model illiquid products, ahead of new market risk capital rules that punish markets suffering patchy liquidity and gaps in trade data.

The lender is building a central repository to host all of its trade data, which Albert Chung, the bank’s head of market risk analytics, Asia, for group market risk models, hopes will allow its risk and finance teams to share a “single golden source of data”. Such efforts