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

IOSCO Forms Coordination Task Force for OTC Derivatives, Data Standards on the Agenda

Subscribe to our newsletter

The Technical Committee of the International Organisation of Securities Commissions (IOSCO) has formed a new Task Force on OTC Derivatives Regulation in order to coordinate securities and futures regulators’ efforts to work together in the development of supervisory and oversight structures for these markets; one aspect of which will be defining data standards for regulatory reporting. The goal of such work around standardisation of data will be to achieve some level of harmony across various regulatory jurisdictions, which could have a significant impact on the data management systems of large cross border financial institutions.

One of the purposes of the task force, according to IOSCO, will be the coordination of data reporting and aggregation requirements for OTC derivatives, thus setting the tone for how this data is to be provided to regulators. This task is in keeping with some of the initiatives and discussions that are going on at a national level with regards to achieving some level of data standardisation in order to more closely track risk within individual markets (see the US Commodity Futures Trading Commission’s (CFTC) work, for example). It will therefore no doubt include recommendations about instrument and entity identifiers and standards to this end.

“The Task Force, in consultation with the Committee on Payment and Settlement Systems (CPSS) and other appropriate regulators, will produce a report by July 2011, which sets out, both for market participants reporting to trade repositories and for trade repositories reporting to the public and to regulators for the purpose of macro- and micro-surveillance: (1) minimum data reporting requirements and standardised formats; and (2) the methodology and mechanism for the aggregation of data on a global basis. In identifying the data that should be reported, the Task Force will take into consideration the recommendations detailed in the report of the Financial Stability Board (FSB) Data Gaps and Systemic Linkages,” states IOSCO in a recent memorandum on the subject.

The FSB has been heavily focused on the data agenda this year, with a view to improving systemic risk oversight across the industry and its input to IOSCO’s endeavour will, no doubt, boost its chances of success. The task force itself is being led by the regulators of the US, UK and India: the Securities and Exchange Commission (SEC), the CFTC, the UK Financial Services Authority (FSA) and the Securities and Exchange Board of India.

As well as the July 2011 report on data, another key deliverable for the group will be a report on international standards that IOSCO says will “set out consistent international standards for OTC derivatives regulation in the areas of trading, data reporting, clearing, and the oversight of swap dealers and other market participants and, to the extent desirable and feasible, exchange and electronic trading”. This is due to be delivered by January 2012.

The standards recommendations and papers will likely feed into the discussions going on across the industry with regards to improving the data quality involved in regulatory reporting. They will also, no doubt, be used to set some of the standards for firms and regulators reporting to the US Office of Financial Research, which is due to provide its first report to the US government in 2012 also.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Best practice approaches to data management for regulatory reporting

Effective regulatory reporting requires firms to manage vast amounts of data across multiple systems, regions, and regulatory jurisdictions. With increasing scrutiny from regulators and the rising complexity of financial instruments, the need for a streamlined and strategic approach to data management has never been greater. Financial institutions must ensure accuracy, consistency, and timeliness in their...

BLOG

FinScan Data Quality Chief Seeks to End Compliance Failure Excuses

The dog ate my homework. The train was delayed. The postman mislaid your birthday card. At one time or another, we’ve all used a weak excuse to forestall censure for an error of behaviour or judgement. And mostly, we’ve got away with it. In financial regulatory compliance, however, excuses won’t wash. Especially when it comes...

EVENT

AI in Capital Markets Summit London

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

AI in Capital Markets: Practical Insight for a Transforming Industry – Free Handbook

AI is no longer on the horizon – it’s embedded in the infrastructure of modern capital markets. But separating real impact from inflated promises requires a grounded, practical understanding. The AI in Capital Markets Handbook 2025 provides exactly that. Designed for data-driven professionals across the trade life-cycle, compliance, infrastructure, and strategy, this handbook goes beyond...