Market and Reference Data
Chapters 6 and 7 introduced the structures and operations of buy-side and sell-side organizations, respectively. This chapter examines the data these organizations use to manage their derivative portfolios.
There are two major data types: market data and reference data. Market data represent the prices or rates of instruments currently traded in financial markets. Reference data represent a broad range of items including static information such as instrument information, issuer, counterparties, currencies, and almost all other information except market data and transaction data. While market data are continuously changing throughout the trading hours, reference data are static until any changes happen to instruments ...