The paper calls for the establishment of a new central Derivative Product Registry (DPR) infrastructure, leveraging the Financial products Markup Language (FpML) standard for data representation.
The International Swaps and Derivatives Association, Inc. (ISDA) released a white paper on the representation of standardised derivative products and a proposal to link unique identifiers to these products.
The central Derivative Product Registry proposed in the white paper will maintain a reference data representation for standardised derivatives, for purposes of the paper broadly defined as OTC derivatives that are electronically executed or centrally cleared, and issue product identifiers for each of those derivatives. The Derivatives Product Registry will also disseminate the reference information to all market participants.
Leveraging the FpML data representation protocol provides an electronic reference representation in the form of XML documents for each of the distinct derivative products that are eligible for clearing and electronic execution through marketplace facilities.
In addition to more support for regulatory reform initiatives such as price transparency reporting and reporting to data repositories, the proposal promises to simplify the trade processing and reporting architecture across the marketplace for standardised derivatives, as market participants will be able to abstract the trade economics through reference data instead of having to specify them as part of each transaction.
Deadline for comments is 6 Mary 2011.
© ISDA - International Swaps and Derivatives Association
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