• Industry News
  • 23 February 2018

Next Step to the CDM

ISDA has taken an important step in its effort to reshape the market and enable the interoperability of new technologies. Last week, we announced we’ve selected regulatory fintech firm REGnosys to help us develop a digital version of the ISDA Common Domain Model(CDM), bringing us closer to a common set of process and data standards that will increase automation and efficiency in the derivatives markets.

That first iteration of the digital CDM – due in about three months – will give technology vendors, market participants and others what they need to try out the model and test it on a range of platforms and technologies. This process of testing and validation is critical to the further development of the model – we need to know how it works in a practical context and where refinements are needed. So we’d like to invite firms with proof-of-concept ideas to get in touch and work with us on those projects.

We think this testing will pay dividends down the line. The ultimate aim is to have a common, robust, digital blueprint for how derivatives are traded and managed across the lifecycle, which sets out how each step in the process can be represented in a standardized format. This will be transformational for the derivatives market, and will help drive much-needed efficiencies by cutting down on mismatches that occur in how firms record events and actions in their own internal systems. We believe this will improve accuracy and consistency in regulatory reporting and compliance, and we will continue to engage with regulators to demonstrate the benefits and ensure the outcomes are appropriate for their needs.

It will also create a bedrock of standards upon which new technologies can be built, enhancing consistency and boosting the potential for these services to operate across firms and platforms. This is important: technologies like distributed ledger, cloud and smart contracts offer the potential for much greater automation and cost reduction, but it’s difficult to see how a truly automated and interoperable trading and post-trade environment can emerge without common standards.

This project has been moving pretty quickly since we published the CDM design definitions last October, but there’s no time to lose. Innovators don’t hang around waiting for everyone else to catch up. It would be a poor outcome if each new technology and service went ahead with its own unique set of process and data standards. We’d just end up with a slightly better version of the fragmented and complex infrastructure we currently have.

We have a unique opportunity to rethink the standards on which this market is built to coincide with the development of next-generation technologies. We need to grasp this opportunity to make our markets less costly and more efficient.

CDM Integration

We do the data mappings for you…

Just extract transaction data from your booking, reporting or any other systems, we handle the rest.
We build mappings in immersion with your tech team, as a packaged +/- 2-day workshop that includes valuable CDM training – and is fun (yes, really)!

… And deliver you a packaged output…

Forget data mapping spreadsheets and forget hard-coded translation buried deep into your code base.
What you get is a transparent, maintainable CDM translation dictionary, automatically packaged into an API to translate your internal trade messages.

… Which you can start using right away

Start using the API for testing right away. For production deployment, we offer a range of hosting options that adapt to your technology stack.
The application grows with you. Just edit your dictionary to connect more and more systems to CDM.
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Data Modelling

Take an existing data pipeline of any form…

Just choose among your existing business processes to experiment a model-driven approach in +/- 2 days.​
We can start from any kind of artefact, from XML messages down to Excel or even PDF documents.

… To demonstrate the model-driven approach…

Our team of data engineering experts works in immersion with you and guide the process from start to finish.​
Our promise: some executable data pipeline running based on your model by the end of the workshop.

… Which you can deploy within your organisation

All it takes is a cross-functional team of developers and non-developers, who is open to a fresh (and fun!) approach.​
The buck doesn’t stop there. That team is now empowered to carry that project forward and build model-based pipelines for your organisation.
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Model-Driven Regulation

Bring-on the regulatory text…

Can be anything in your existing corpus, as long as it’s digestible and relatively self-contained.
The target is to deconstruct that text and reconstruct a model of the regulation in +/- 2 days.

… We’ll handle the rest…

Our team of regulatory and engineering experts works in immersion with you and guide the process from start to finish.
Our promise: some executable code running by the end of the workshop, delivered to you and ready for demonstration.

… And you’re ready to develop rules on your own

All it takes is a cross-functional team, ideally all-encompassing from policy to technology, who is open to a fresh (and fun!) approach.
The buck doesn’t stop there. Your team is now empowered to carry that project forward inside your organisation.
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Reporting Audit

First, map your data into CDM...

We have it covered it. All it takes is a +/- 2-day immersion workshop with your tech team to build your mappings.
As a by-product, you get a ready-to-use API to convert all your trade data

… And access your audit results on-line…

Once your trade data have been mapped, our reporting engine compares its output to your reports and analyses any discrepancy.
Analysis is developed within 6 weeks and results published into a web application.

… Through a powerful user interface

Forget static audit reports that end-up on a shelf.
Our reporting engine is available on-demand to reconcile your reporting process end-to-end and down to single trade flow, through a fully interactive interface.
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