The International Swaps and Derivatives Association has inked a deal with regulatory fintech firm REGnosys to develop its digital Common Domain Model.
REGnosys was selected following a request for quotations issued in the fourth quarter of 2017, and will now assist ISDA in developing the framework to build a digital version of the ISDA CDM, based on a conceptual design published last October. The project is expected to take three months.
ISDA will subsequently work to have this initial iteration of the CDM demonstrated and validated on various new technologies during the second quarter of 2018. The Association will reach out to experts from the membership and beyond who have ideas for proof-of-concept projects where the ISDA CDM can be deployed, in order to further develop the model and maximize the potential for success.
The ISDA CDM is intended to provide a standard representation of events and actions that occur during the life of a derivatives trade, alongside the accompanying product data. Establishing a common set of data and processing standards that all participants can access and deploy will enhance consistency and interoperability across firms and platforms.
Scott O'Malia, ISDA
“The infrastructure that supports the derivatives market is complex, manually intensive and costly to maintain – it just isn’t scalable. New technologies such as distributed ledger and smart contracts offer the potential for greater automation and efficiency, reducing complexity and costs. But effective automation can only be built on standardization. That’s where the ISDA CDM comes in. We’re delighted to work with REGnosys to take this ambitious project to the next stage,” said Scott O’Malia, ISDA’s Chief Executive.
“We look forward to working with ISDA and its members to develop this digital marketplace repository of data and processes, leveraging our expertise in this space,” said Leo Labeis, CEO of REGnosys.
“We will combine best-in-class technology with existing data standards to provide a new paradigm that market participants can use to deploy innovative solutions,” added Pierre Lamy, Chief Operating Officer at REGnosys.
REGnosys will work with ISDA to produce the framework for a digital representation of the ISDA CDM, and will create the first iteration of the digital model, focusing on the interest rates and credit asset classes. For the product representations, the project will analyze and build on the product data elements found in Financial products Markup Language.
