Sapient Global Markets will design and build the European DataWarehouse, the first European central data repository owned and operated by the market for the market. It is also endorsed by the Eurosystem.
In December 2010, the Governing Council of the European Central Bank (ECB) said that it will be establishing loan-by-loan data requirements for ABS in the Eurosystem collateral framework. The aim was to improve transparency and help restore investor confidence in the European securitization markets.
As part of the initiative, the ECB in April 2011 encouraged the creation of a data warehouse for the processing, verification and transmission of loan-level data by an independent constructor external to the Eurosystem. At the same time, the ECB President Jean-Claude Trichet invited market participants to support the initiative.
An independent group of nine ABS investors and originators from across Europe called the "Market Group" was formed to oversee and advise the processes to select a company to build the European DataWarehouse.
The Market Group selected Sapient Global Markets because if its capacity and experience in securitized product risk management and valuation, the group said in a press statement.
“After a competitive tender process, the Market Group selected Sapient Global Markets to construct the European DataWarehouse based on its ability to work with us across all facets of this project,” said Paul Burdell, secretary of The Market Group. “Sapient demonstrated previous experience providing transparency into structured finance instruments, and a clear understanding of the importance of this project to the market.”
The European DataWarehouse will allow ABS originators to submit loan-level data electronically in accordance with reporting templates developed by the ECB.
Its goal is to increase transparency and enable investors to assess ABS value and risk. It will do this by providing a central data repository for ABS information, including those related to the underlying financial assets.
The European DataWarehouse will also offer functionality for the processing, verification and transmission of loan-level data between originators of and investors in securitized products.