Update on data interoperability activities ECB 1 June Michal Piechocki Chairman Frankfurt Group Technical Workshop

Transcription

1 Update on data interoperability activities ECB 1 June 2016 Michal Piechocki Chairman Frankfurt Group Technical Workshop

2 Investigate existing knowledge domain relevant to interoperability of data standards within financial industry Learn from industry and regulatory representatives / experts Develop proposals for increasing data interoperability through application of standards

3 Past Present Future Law: (data in regulations) Local regulations International standards Single approach? Logic: (data description, semantics) Forms Dictionaries, taxonomies Ontologies? Technology: (data exchange and processing, syntax) Programs Data standards XML-derivatives Open APIs? Repository: (data storage and source of data for analysis) Files Databases Distributed ledger?

4 Standards: ISO20022, FpML, FIX, MISMO, XBRL, DPM, RIXML, IFX, OFX, BPM6, SDMX, SDDS, MDDL, ACORD Projects / other: FIBO, ACTUS, DPM2ISO, SMCube Identifiers: Product: UPI, ISIN (ISO 6166), Alternative Instrument Identifier, FISN (ISO 18774), CUSIP, NSIN, FIGI (Bloomberg), RIC (Reuters) Entity: LEI (ISO 17442), MFI Code (ECB), IBAN (ISO 13616), SWIFT- BIC (ISO 9362), MIC (ISO 10383) Transaction: USI, UTI (CPMI-IOSCO, ISDA)

5 Solvency II CRD IV (Basel II) / CRR MMSR SHS AnaCredit BSI-MIR SFT EMIR MIiFID II/MiFIR Dodd Frank Sarbanes-Oxley Act Data Transparency Act T2S AIFMD IFRS AMLD IV FATCA

6 Specialisation Abstraction Identification Insurance / mortgage Market / trade Universal / finance Research/ statistics DPM RIXML ISO XBRL SDDS Transactional / Detailed LEI Reporting / Aggregated XBRL GL MDDL IFX ACORD FIBO ACTUS SDMX FpML CCS FIX Protocol MISMO

7 The main gap seems to appear on the border of transactional and aggregated data where financial institutions, with support of internal systems, transform operational and transactional data into internal or regulatory information, analysis of risks, exposures and other data sets, using classifications and calculation methods imposed by the regulator. The gap appears at: Semantical level no common use of attributes or standards or processes seems to cross the gap Syntatical level differing technologies are used on either side of the gap

8 First technical workshop: Recap: During the first technical workshop we have explored the financial institution regulatory information supply chain starting with contract definition (FTDL, proprietary), through transactional standards (ISO 20022, FpML, FIX), through aggregated standards (DPM, XBRL) through interoperability of aggregated standards (SMCube, SDMX&XBRL&AnaCredit) finishing with regulatory approaches for integrated data collection (EIOPA T4U). Second technical workshop: Recap: During the second workshop we have followed up with the previous workshop conclusion and discussed Target2Securities and general market infrastructure data, standards and technologies, ESMA activities in this space, SFT use case, MMSR reporting, intraday liquidity and ECB considerations for input approach. Third technical workshop: The workshop introduced Banca di Italia approach and PumaDuo system, Bank of England shared their experiences with data standards (great Focus on governance aspects), Deutsche Bank shared a deep insight on coordination across a global player of data initiatives and approaches, ACTUS project presented mathematical approach to classification of Financial instruments. Fourth technical workshop: Recap: a representative from the German Investment Funds Association introduced to data standards and especially the ISO role for asset managers. Further ECB update on MMSR was provided. The workshop introduced the first draft of the Data Standards and Initiatives Repository which received positive feedback and enhancement recommendations and discussed developmentideas for the repository and related Financial Institution Information Flows. Fifth technical workshoo: Recap: the workshop focused on Data Standards and Initiatives Repository and the Financial Institutions Information Flows. EU WINDOW was presented as well as experiences from Goldman Sachs.

9 Work item Data Standards and Initiatives Repository Financial Institutions Information Flows Concept presented 1st internal draft presented 2nd internal draft presented Completed Completed Under development Completed Completed (OTC EU IRS) Completed (OTC EU IRS Reviewed) 3rd internal draft presented Under development (OTC US IRS)

10 OTC US interest rate swap BPML map ASEAN perspective Other instruments Detailed information on data standards Detailed properties of data DLT-dedicated workshop Gap analysis 10