ISDA’s Digital Regulatory Reporting (DRR) solution uses the open-source Common Domain Model (CDM) to transform an industry-agreed interpretation of new or amended regulatory reporting rules into unambiguous, machine-executable code, making implementation more efficient and cost effective.
Key Benefits
The ISDA DRR significantly reduces the time, resources and cost needed to implement reporting regulations in multiple jurisdictions. Rather than interpreting and implementing each set of rules individually, and then repeating that work in future if changes are necessary, firms can implement code that has been validated and tested by industry participants and will be updated as new rules emerge or are amended, enabling resources to be reassigned to other projects.
As the DRR is based on a mutualized industry interpretation of rules in multiple jurisdictions and will be fully accessible to regulators, the potential for regulatory penalties due to incomplete or misreported data is substantially reduced.
ISDA is committed to supporting 11 core regulatory reporting regimes across nine jurisdictions: the US (under Commodity Futures Trading Commission (CFTC) rules), the EU (under the European Market Infrastructure Regulation (EMIR) and the Markets in Financial Instruments Regulation (MIFIR)), the UK (under UK EMIR and UK MIFIR), Japan, Australia, Singapore, Hong Kong, Canada and Switzerland.
The ISDA DRR is freely available to all firms.
Contact
For further information on the ISDA DRR or to get started, please contact CDMDRR@isda.org.
About the ISDA DRR
Regulators around the world are revising their reporting rules to incorporate globally agreed data standards to improve the cross-border consistency of what is reported and the format in which it is submitted. While more aligned, each set of requirements will need to be individually interpreted and implemented, with no guarantee each firm will interpret rule requirements in the same way, leading to inconsistencies and the potential for regulatory fines for those firms that get it wrong.
ISDA’s DRR addresses this by establishing a golden-source interpretation of each rule set, reviewed and agreed by an industry committee. The CDM – an open-source data standard for financial products, trades and lifecycle events – is used to convert this mutualized interpretation into open-access, machine-executable code.
Firms can implement the ISDA DRR directly as their main regulatory reporting solution, producing outgoing message reports in the required ISO 20022 format, or use it as a control function to validate their existing reporting logic. Vendors can also implement the ISDA DRR as part of their reporting solution and make it available to their customers.
Institutions involved in the development of the ISDA DRR include (but are not limited to):
Features
- Reduces the costs and resource requirements that would arise from having to interpret and implement each set of rules individually.
- Cuts the risks of regulatory penalties for incorrect or misreported data.
- Delivers more accurate and consistent data to regulators, helping them to identify possible sources of systemic risk.
- Increases interoperability between firms’ reporting processes.
- Reduces reconciliation breaks in dual-sided reporting regimes.
- Enables future reporting rule revisions to be easily delivered via centralized DRR reporting code changes.
- Reports generated in the ISO 20022 format, which can be submitted directly to trade repositories.
Coverage
The ISDA DRR will cover regulatory reporting rules in all major jurisdictions and ISDA is committed to supporting the DRR in future by incorporating all future amendments.
- The first iteration of the DRR was launched in November 2022, ahead of the initial set of reporting rule changes introduced by the US Commodity Futures Trading Commission (CFTC) on December 5, 2022.
- The ISDA DRR has since been extended to cover amended rules in Japan (April 1, 2024) and the EU for reporting rules under EMIR (April 29, 2024).
- The DRR is now available for testing for rule changes under UK EMIR (September 30, 2024), Singapore (October 21, 2024) and Australia (October 21, 2024).
- The ISDA DRR will be further extended to cover rule amendments in Hong Kong (September 29, 2025) and Canada (2025), as well as updates to MIFIR in the EU and UK.
- All further updates, including additional changes currently being considered by the CFTC, will be incorporated into the ISDA DRR well in advance of implementation.
Fact Sheets/Presentations
- April 2024: Digital Regulatory Reporting Fact Sheet
- April 17, 2024: ISDA AGM 2024: Eric Litvack Chairman Remarks
- April 16, 2024: ISDA AGM 2024: Day 1 Scott O’Malia Opening Remarks
- February 28, 2024: CDM Showcase 2024: Scott O’Malia Afternoon Remarks
- March 28, 2022: Digital Regulatory Reporting: Market and Regulatory Initiatives
- ISDA DRR Working Groups – Terms of Reference
Press Releases/Blogs
- July 8, 2024: ISDA’s Commitment on Data Reporting
- April 17, 2024: ISDA Extends Digital Regulatory Reporting Initiative to New Jurisdictions
- February 26, 2024: DRR: The Answer to Reporting Rule Rush
- November 16, 2023: The Swap Podcast: Reporting Revamp
- October 17, 2023: Hidden in Plain Sight?
- February 27, 2023: Continuing Our Digital Journey
- November 28, 2022: A Digital Approach to Reporting
- November 22, 2022: ISDA Launches Digital Regulatory Reporting 1.0 and Opens Access to Entire Market
- November 2, 2022: ISDA and BNP Paribas Successfully Test Digital Regulatory Reporting for CFTC Rules
- September 30, 2022: Efficiency Through Reporting Best Practice
- February 3, 2022: All About Transparency
- November 15, 2021: The Efficient and Scalable Answer to CFTC Reporting Compliance
- February 17, 2021: Time to Digitize Trade Reporting
- October 6, 2020: ISDA and REGnosys Win G-20 TechSprint For Regulatory Reporting
- August 6, 2020: Digital Benefits: A Member Perspective
- July 30, 2020: A Digital Call to Arms
- July 27, 2020: ISDA and ISLA Agree to Closer Collaboration on Digital Initiatives
- May 21, 2019: ISDA CDM Deployed to Help Deliver UK Digital Regulatory Reporting Pilot
Webinars/Videos