About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

FISD Relishes Role in WG11 to Develop Financial Data Model

Subscribe to our newsletter

Delegates at the FISD’s general meeting in Paris late last month heard about the industry group’s significant involvement in International Standards Organization’s Working Group 11, which released a draft consultation paper in early March as the previous edition of Reference Data Review was going to press.

Working Group 11 (WG11) of Steering Committee 4 (SC4) of the ISO Technical Committee 68 (TC68) was created earlier this year and charged with developing a data model that “provides a single standard for describing a financial instrument throughout its lifecycle.”

In Paris, FISD president Mike Atkin told delegates that FISD – the Financial Information Services Division of the Software & Information Industry Association (SIIA) – was a leading participant in WG11 and one of the drivers of the discussions, which include the creation of a standardized market data vocabulary.

Atkin said ISO was serious about the work of WG11, pointing to the fact that many of the elements required to develop the financial data model were already in place. He pointed to the fact that WG11’s business model approach had already been used by ISO’s WG10 and in the development of the XML edition of the 15022 specification. He also said that the ISO 15022 data field dictionary includes most of the terms associated with transactions required for the data model.

“In addition,” he said, “FISD is contributing the MDDL (Market Data Definition Language) terms, definitions and relationships to the WG 11 process. MDDL has been working toward the creation of a market data vocabulary for some time – and we have a very good starting point (I’d estimate around 80%) already defined.” Finally, Atkin pointed out that FISD, MDDL, FIX, Swift and others industry groups are all sitting at the same ISO table for the first time.

WG11’s aim is to “define the data model components with enough precision to cover the full range of processes and applications.” In its consultation document, the group outlined a matrix that maps the various processes involved in the financial instrument lifecycle to the data types required for set-up of a security master file, pricing for valuation of instruments and maintenance for keeping the two up to date; for example, handling corporate events that may affect an issue and its value.

According to Atkin, the group has identified as many as 20 processes or functional tasks relating to the instrument lifecycle. These include IPO issuance, completing a trade, allocation, clearing, settlement, collateral management, reconciliation, transfer, valuation, performance management and reporting.

“Within Set-up,” he said, “we have identified 10 core characteristics, including security identification, classification, rights and obligations…. Within pricing, we’ve identified eight core characteristics, including time of price, source, status, market…. And for maintain, we’ve identified another eight characteristics including corrections and all sorts of corporate actions categories.”

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Best practices for buy-side data management across structured and unstructured data

Date: 14 November 2024 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Data management is central to asset management, but it can also be a challenge as firms face increased volumes of data, data complexity and the need to consolidate structured and unstructured data to gain valuable insights, improve decision-making, step...

BLOG

Insurance Stress Test Success Hangs on Data Quality and Management

Recently revealed tests to explore the resilience of insurers to external shocks are likely to succeed – or fail – on the data that the under-scrutiny firms possess. Data will be a central ingredient on the tests detailed last month by the Prudential Regulation Authority (PRA), which oversees the industry. In its most recent communique,...

EVENT

AI in Capital Markets Summit New York

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

Regulatory Data Handbook 2024 – Twelfth Edition

Welcome to the twelfth edition of A-Team Group’s Regulatory Data Handbook, a unique and useful guide to capital markets regulation, regulatory change and the data and data management requirements of compliance. The handbook covers regulation in Europe, the UK, US and Asia-Pacific. This edition of the handbook includes a detailed review of acts, plans and...