Post-trade services and systems provider DTCC, which operates the Global Trade Repository, a derivatives trade reporting service for brokers, buy-side firms and corporates in nine jurisdictions across 33 countries, has made recommendations regarding global data harmonization to the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) harmonization working group.
The CPMI “promotes the safety and efficiency of payment, clearing, settlement and related arrangements, thereby supporting financial stability and the wider economy,” according to the Basel-based Bank for International Settlements, which characterizes itself as the “world’s oldest international financial organization. The BIS has 60 member central banks, representing countries from around the world that together make up about 95% of world GDP.”
The IOSCO characterizes itself as the “international body that brings together the world’s securities regulators,” and which “develops, implements and promotes adherence to internationally recognized standards for securities regulation.”
The DTCC’s proposal to CPMI and IOSCO “involves harmonizing approximately 30 data fields across global trade repository providers, essentially creating a global data dictionary; these fields are viewed as critical to financial stability and systemic risk analysis.”
Furthermore, the DTCC says its recommendation is “in alignment” with the International Swaps and Derivatives Association’s (ISDA) “perspectives on data quality, and DTCC believes this approach provides a path forward to promote more active dialogue between CPMI IOSCO and the industry in order to address the existing reporting challenges that have emerged due to the jurisdictional implementation of reporting rules.”
“As the world’s largest global trade repository, DTCC has remained committed to ensuring that the service is able to deliver upon the transparency goals that were called for by the G20 following the financial crisis,” Larry Thompson, vice chairman and general counsel of DTCC, chairman of the board of DTCC Deriv/SERV LLC, says in the DTCC statement. “In order to be able to fully capitalize on all of the benefits of this data, greater data standardization across re positories is required. We welcome feedback from the CPMI IOSCO Harmonization working group and look forward to continuing to work with regulators and the industry on this important initiative.”
More information is available via the FTF News item, “Industry Groups Endorse ISDA Reporting Principles,” at http://bit.ly/1JgM4ui
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