Can Reference data be used for financial trading?

Can Reference data be used for financial trading?
A . No because customer data is not considered reference data
B . No. reference data is static, financial data trading is dynamic
C . No. since financial trades change every second they cannot use reference data
D . Yes. but only less than 1096 can be used
E . Yes. an estimated 70% of data being used in financial transactions is reference data

View Answer

Answer: E

Explanation:

Reference data plays a crucial role in financial trading. It includes data such as financial instrument identifiers, market data, currency codes, and regulatory classifications. Despite the dynamic nature of financial trades, reference data provides the necessary static information to execute and settle transactions. Industry estimates suggest that approximately 70% of the data used in financial transactions is reference data, underscoring its importance in the financial sector.

Reference: DAMA-DMBOK: Data Management Body of Knowledge (2nd Edition), Chapter 11: Reference and Master Data Management.

"The Data Warehouse Toolkit: The Definitive Guide to Dimensional Modeling" by Ralph Kimball and Margy Ross.

Industry publications and whitepapers on reference data management in financial services.