The Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions have published a joint report on governance arrangements for critical data elements for over-the-counter derivatives. The report does not cover governance arrangements for the Unique Transaction Identifier and Unique Product Identifier, which are being reviewed separately by the Financial Stability Board. The report aims to contribute to international efforts to improve transparency, mitigate systemic risk and prevent market abuse in derivatives markets.

Critical data elements (CDE) for OTC derivatives include data elements related to: (i) dates and timestamps; (ii) counterparties and beneficiaries; (iii) clearing, trading, confirmation and settlement; (iv) regular payments; (v) valuation; and (vi) collateral and margins. The report’s proposed governance arrangements involve governance functions across the following three areas:

1.Execution of maintenance functions, involving technical updates of data standards and the list of data elements falling within the CDE data standards, as well as updating of the CDE Technical Guidance;

2.Oversight functions, including monitoring, analyzing and resolving issues and requests related to the maintenance of the CDE data standards; and

3.Implementation functions, involving the processing of requests for information related to the CDE Technical Guidance, dissemination of the CDE Technical Guidance and recommendations for how the CDE Technical Guidance should be implemented by authorities.

 The report recommends jurisdiction-level implementation of CDE by Q3 of 2022, although IOSCO and the BIS acknowledge that fully synchronised regulation and technological implementation is unlikely to be achieved across all jurisdictions and industries.

View the IOSCO and BIS Report on governance arrangements.

View details of the FSB’s governance arrangements for UTIs and UPIs.

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