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The need for worldwide financial market standards

Aurel Schubert Director-General Statistics, ECB Hansjakob Schlaich Adviser DG Statistics, ECB. Who trades what? Who holds what? Who holds which risk? Who is exposed to which counterparties? Who …. The need for worldwide financial market standards.

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The need for worldwide financial market standards

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  1. Aurel Schubert Director-General Statistics, ECB Hansjakob Schlaich Adviser DG Statistics, ECB Who trades what?Who holds what?Who holds which risk?Who is exposed to which counterparties?Who … The need for worldwide financial market standards

  2. […] Finance is a global business, and both the regulation and the underlying data requirements for global institutions would benefit from more harmonisation worldwide. Concrete steps towards standardisation include the establishment of mandatory requirements regarding the use of the International Securities Identification Number and the global Legal Entity Identifier […] - Mario Draghi, ECB Statistical Conference 2016 Who trades what? The need for worldwide financial market standards

  3. Sharing of dataIncreasing amount and variety of microdataTransactional, banking supervisionand statistical data, credit cards data, wire services etc. Public actionPolicy making, reporting, regulation, managing risks Issue - Risk“Local” standards - limited to certain use casesMissed business opportunities and high(er) costs The need for cross-border standards Who trades what? The need for worldwide financial market standards

  4. Standardisation Agenda? Source: http://xkcd.com/

  5. TechnicalDefinecommondatastandards, harmoniseconcepts, introducecross-borderidentifiers (LEI, UPI, UTI, ISIN) Legal conceptsFacilitatecommongovernancee.g. CRR III, ESA 2010 (macrodata) Cultural challengesPublic action, balanceneeds, align different perspectives From the source to final use – consider the full data value chain Agree on common concepts Who trades what? The need for worldwide financial market standards

  6. EuropeBank Integrated Reporting Database (BIRD), European Reporting Framework (ERF), Single Data Dictionary (SDD)Analytical Credit Dataset (AnaCredit)Money Market Statistical Reporting (MMSR)Prospectus Directives WorldFinancial Stability Board (FSB, e.g. CPMI-IOSCO WG)Basel Committee on Banking Supervision (BCBS)International Organisation for Standardisation (ISO)Universal Financial Industry message scheme(ISO 20022 / TC 68) Contribution of the ECB Who trades what? The need for worldwide financial market standards

  7. Legal Entity Identifier (LEI)Reference and in future Relationship data Unique Product Identifier (UPI) Unique Transaction Identifier (UTI) Under development in particular OTC derivatives Mandatory usewill increasing coverage significantly – e.g. EMIR regulation, security prospects, etc. Application Cross boarder identifiers WhoLEI TradesUTI WhatUPI Who trades what? The need for worldwide financial market standards

  8. Application The Legal Entity Identifier – Progress of Registration 466,832 Identifiers Who trades what? The need for worldwide financial market standards

  9. PerspectiveRequirement to use and integrate microdata necessitates worldwide financial market standards DevelopmentECB and ECB Statistics promote: detailed and clear guidance, best practices for reporting, synergies, consistency, technically feasible and practical solutions EngageStatistical stakeholders - public organisations, academia and industry, foster collaboration, need to join forces Conclusion Who trades what? The need for worldwide financial market standards

  10. Questions and Answers

  11. Second Phase of the G20 Data Gaps Initiative (DGI-2): First Progress Report Financial integration in Europe, 2016 April. European Central Bank Chapter 3, page 75 Welcome Address to the Eighth ECB Statistics Conference by Mario Draghi Bottega, John A., and Linda F. Powell. "Creating a linchpin for financial data: Toward a universal legal entity identifier." Journal of Economics and Business 64.1 (2012): 105-115. CPMI-IOSCO, Harmonisation of key OTC derivatives data, Consultative report (2015), page 2-3. BIRD (Banks Integrated Reporting Dictionary): banks-integrated-reporting-dictionary.eu Opinion of the ECB on the prospectus directives (CON/2016/15) Further Reading Enter presentation title by changing the footer.

  12. Appendix Enter presentation title by changing the footer.

  13. Need for global standards at the ECB • Rapid expansion of demand and availability of data Setting Global Standards for Granular Data, 2nd OFR/BoE/ECB workshop, 29-30 October 2015

  14. Financial Markets Data Standards ECB-UNRESTRICTED An Overview Setting Global Standards for Granular Data, 2nd OFR/BoE/ECB workshop, 29-30 October 2015

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