Digital Regulatory Reporting: Market and Regulatory Initiatives

The complexity and cost of global efforts to improve the data quality of derivatives regulatory reporting create a variety of challenges for market participants and policy-makers.

These concerns – and the opportunity to mitigate them as major changes to reporting rules are implemented over the next two years – have become a powerful impetus behind digital regulatory reporting (DRR) initiatives. Broadly defined, DRR refers to the publication of reporting rules by regulators and/or the implementation of derivatives reporting requirements by market participants via human-readable, machine-executable code.

DRR will allow regulators to publish reporting rules as executable code that can be automatically read and interpreted by the IT systems of reporting entities, improving the reporting process across asset classes. Regulated entities will be able to automatically execute new and amended regulatory reporting rules using an industry-led standardized interpretation of the requirements as free open-source code.

This paper explains what DRR is, reviews its potential benefits and describes the various initiatives that are under way. In particular, the paper highlights the work of ISDA and market participants to enable all firms to implement regulatory reporting rules consistently using the open-source Common Domain Model. The paper also describes several DRR initiatives launched by policy-makers that involved collaboration with market participants.

For more information, contact ISDADataReporting@isda.org.

Documents (1) for Digital Regulatory Reporting: Market and Regulatory Initiatives

Moving Regulatory Reporting up a Gear with AI

The aim of derivatives regulatory reporting is to improve transparency so regulators can monitor market activity and identify emerging risks. Although reporting rules and subsequent updates have resulted in improvements, they haven’t achieved fully consistent outcomes, leading to implementation and...

ISDA Publishes FpML Version 5.14

ISDA has published a new version of its Financial products Markup Language (FpML), a widely used open-source standard for the electronic dealing and processing of derivatives transactions. The latest iteration – version 5.14 – incorporates several key modifications and updates...