ISDA extends Digital Regulatory Reporting to new jurisdictions
17 April 2024 UK
Image: Sergey_Nivens/stock.adobe.com
The International Swaps and Derivatives Association (ISDA) will extend its Digital Regulatory Reporting (DRR) initiative to several additional jurisdictions.
According to the association, the move will enable firms to implement changes to regulatory requirements cost-effectively and accurately, reducing the risk of regulatory penalties for misreported data.
The extension will cover rule amendments being implemented under the UK European Market Infrastructure Regulation (EMIR), and by the Australian Securities and Investments Commission, and the Monetary Authority of Singapore.
These rule changes are due to go live in the UK on 30 September 2024, and on 21 October 2024 in Australia and Singapore.
The DRR initiative aims to address cross-border disparities within various rule sets through a golden-source interpretation of each rule set, reviewed and agreed by an industry committee.
The Common Domain Model is used to convert this mutualised interpretation into free, machine-readable code. Firms are able to use the ISDA DRR as the basis for implementation or to validate an independent interpretation of the rules.
ISDA’s DRR will be further extended to cover rule changes in Canada and Hong Kong, both due in 2025.
ISDA CEO Scott O’Malia comments: “The ISDA DRR significantly reduces the time and cost needed to implement changes in reporting requirements.
“Rather than interpreting and implementing each set of rules themselves, and then repeating that work as the rules change in future, firms can implement code that has been validated and tested by industry participants and will be updated as rules are amended, enabling resources to be reassigned to other projects.”
He adds: “The DRR code for the UK, Australia, Singapore, Canada and Hong Kong will be available well ahead of the rules coming into effect, meaning firms will have plenty of time to implement and test the DRR before using it to report to regulators. Having supported the first phase of the CFTC rule amendments, we’re also committed to updating the DRR to include any additional changes when finalised.”
According to the association, the move will enable firms to implement changes to regulatory requirements cost-effectively and accurately, reducing the risk of regulatory penalties for misreported data.
The extension will cover rule amendments being implemented under the UK European Market Infrastructure Regulation (EMIR), and by the Australian Securities and Investments Commission, and the Monetary Authority of Singapore.
These rule changes are due to go live in the UK on 30 September 2024, and on 21 October 2024 in Australia and Singapore.
The DRR initiative aims to address cross-border disparities within various rule sets through a golden-source interpretation of each rule set, reviewed and agreed by an industry committee.
The Common Domain Model is used to convert this mutualised interpretation into free, machine-readable code. Firms are able to use the ISDA DRR as the basis for implementation or to validate an independent interpretation of the rules.
ISDA’s DRR will be further extended to cover rule changes in Canada and Hong Kong, both due in 2025.
ISDA CEO Scott O’Malia comments: “The ISDA DRR significantly reduces the time and cost needed to implement changes in reporting requirements.
“Rather than interpreting and implementing each set of rules themselves, and then repeating that work as the rules change in future, firms can implement code that has been validated and tested by industry participants and will be updated as rules are amended, enabling resources to be reassigned to other projects.”
He adds: “The DRR code for the UK, Australia, Singapore, Canada and Hong Kong will be available well ahead of the rules coming into effect, meaning firms will have plenty of time to implement and test the DRR before using it to report to regulators. Having supported the first phase of the CFTC rule amendments, we’re also committed to updating the DRR to include any additional changes when finalised.”
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