The Fintech Open Source Foundation (FINOS) has released a long-awaited Common Domain Model (CDM) designed to drive transparent and inclusive industry standards. The model is a result of cross-industry collaboration between FINOS, the International Swaps and Derivatives Association (ISDA), International Capital Market Association (ICMA), and International Securities Lending Association (ISLA).
The CDM is integrated into the FINOS project landscape, and can streamline and automate lifecycle events and processes related to derivatives, fixed income and securities lending transactions, reducing costs and improving interoperability. The model promotes transparency and alignment by producing consistent trade data, which enhances risk management and trade processing capabilities.
“This is the perfect time for the industry to double down on standards collaboration,” says Jane Gavronsky, COO at FINOS. “Progress in digitising regulatory rules, advances in smart contracts, continuous demand for greater transparency from regulators, and mounting cost pressures in the market all point at the need to join forces to increase interoperability via standards proliferation, and to do more with less by mutualising development cost.”Andrew Dyson, chief executive at ISLA, added: “Placing the CDM within the FINOS community marks a watershed moment in the development of standards for the industry. Strategically, the open-source methodology should breed faster convergence, facilitate quick adaptation to future changes to capital markets requirements, and attract a wider user base.”
The release of the CDM coincided with the completion of ICMA’s CDM project for repo and bonds. The CDM is available under the FINOS Community Specification License 1.0.
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