When Good Incentives Are Not Enough: The Quest for Financial Data Standardization

Data standardization – the process of developing and implementing rules for how data are described and recorded – offers significant benefits for financial firms and regulators.  Nonetheless, the topic has received only scant attention from academics, and regulatory efforts to promote standardization lag far behind the levels that would be optimal.  In a new paper, The Data Standardization Challenge, available here, we examine the myriad public and private benefits from standardization and the many frictions favoring the status quo.  We further use data standardization as a case study that illuminates the banal but meaningful forces that often lead … Read more