Market data management encompasses tasks related to managing information used across which areas of a financial institution?

• A. Front office only
• B. Across front to back office
• C. Back office only
• D. Risk management only

Answer: (B)

Market data management ensures the accuracy, availability, and governance of information used throughout the institution. This data—prices, quotes, reference data, and other market information—feeds front-office traders for pricing and decision-making, as well as back-office processes like trade capture, settlement, and reconciliation. Risk management also relies on this data to measure exposures and monitor limits. Because these data flows are shared across trading, operations, and risk functions, market data management spans from front to back office, ensuring consistency and reducing operational risk. Limiting it to a single area would create gaps and inconsistencies in how data is used and governed.