DTCC issues proposal for global data harmonisation
17 June 2015 New York
Image: Shutterstock
The Depository Trust & Clearing Coporation (DTCC) has issued its recommendations on global data harmonisation to the Committee on Payments and Market Infrastructure (CPMI) and International Organization of Securities Commissions (IOSCO) harmonization working group.
It details a proposed path towards a global data harmonisation, with credit derivatives identified as the first step.
The approach involves harmonising approximately 30 data fields across global trade repository providers, these fields are viewed as critical to financial stability and systemic risk analysis.
It is in alignment with International Swaps and Derivatives Association’s 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 implantation of reporting rules.
DTCC operates the Global Trade Repository, and as a trade repository it plays a role in bringing new levels of transparency to the OTC derivatives marketplace. However, in the absence of harmonised global data standards across jurisdictions and repository providers, data gathered to date has not been able to be leveraged to its full extent due to inconsistencies and quality.
Larry Thompson, vice chairman and general counsel of DTCC and chairman of the board of DTCC Deriv/SERV LLC, commented: “In order to be able to fully capitalise on all of the benefits of this data, greater data standardisation across repositories 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.”
It details a proposed path towards a global data harmonisation, with credit derivatives identified as the first step.
The approach involves harmonising approximately 30 data fields across global trade repository providers, these fields are viewed as critical to financial stability and systemic risk analysis.
It is in alignment with International Swaps and Derivatives Association’s 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 implantation of reporting rules.
DTCC operates the Global Trade Repository, and as a trade repository it plays a role in bringing new levels of transparency to the OTC derivatives marketplace. However, in the absence of harmonised global data standards across jurisdictions and repository providers, data gathered to date has not been able to be leveraged to its full extent due to inconsistencies and quality.
Larry Thompson, vice chairman and general counsel of DTCC and chairman of the board of DTCC Deriv/SERV LLC, commented: “In order to be able to fully capitalise on all of the benefits of this data, greater data standardisation across repositories 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.”
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