Reference Data

Reference data refers to standardized information that is used consistently across an organization to identify key entities, such as customers, products, securities, or legal entities. In financial markets, reference data includes essential information about securities, such as their identification codes (e.g., ISIN), issuers, and classification. Accurate reference data is critical for trading, settlement, reporting, and regulatory compliance. It helps ensure the smooth operation of financial transactions by providing a uniform understanding of key entities.

Example

A brokerage firm uses reference data, such as ISIN codes and security descriptions, to ensure that all securities are accurately identified and processed during trades and settlements.