ICMA introduces bond data taxonomy 14 March 2023Switzerland Reporter: SFT
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The International Capital Markets Association (ICMA) has released a bond data taxonomy (BDT) that provides a common, standardised language to facilitate STP across the bond transaction lifecycle and reduce inconsistent use of data in securities issuance.
The bond data taxonomy will enable automation and encourage interoperability, promoting standardisation of data modelling and minimising the requirement for manual intervention across trading and post-trade workflow.
In doing so, the BDT is vendor agnostic, enabling data exchange in standard format between market participants and the various bond trading and post-trade systems that they use. Standardised data templates will also provide a firm foundation for technology innovation and use of emergent solutions built on distributed ledger.
The Association has released a Bond Taxonomy Pack which standardises the key economic terms of a vanilla bond (including nominal amounts, pricing, currency and coupon rates), key dates (eg issue date, settlement date, pricing date) and other relevant information (whether bearer bonds, ratings) typically included within the term sheet.
This BDT Pack includes machine-readable definitions of key fields, expected values and ISO elements, along with a user guide.
The BDT was previously known as the common data dictionary.
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