Commissioner Scott D. O'Malia, the chairman of the Technology Advisory Committee (TAC), announces that the Commission has voted to establish a Subcommittee on Data Standardization to develop recommendations regarding a standardized reference data depository representing the universe of legal and financial terms utilized in describing, defining, and valuing the various derivatives and other financial instruments which are presently and in the future may be traded on and off of regulated exchanges.
The creation of standardized reference points and data terms is anticipated to aid in the development and use of universal entity, product, and/or instrument identifiers and provide greater consistency in the collection, reporting, and management of individual transactions, underlying legal documents (including master agreements and credit support agreements), and risk exposures.
"The data and reporting mandates of the Dodd-Frank Act place the CFTC in the center of the complex intersection of data, finance and the law. There is a need and desire to go beyond legal entity identifiers and lay the foundation for universal data terms to describe transactions in an electronic format that are identifiable as financial instruments and recognizable as binding legal documents. I think the Technology Advisory Committee, through the advice and guidance this new Subcommittee on Data Standardization, represents the most effective means of achieving universally acceptable data standards," said Commissioner O'Malia.
The subcommittee will be chaired by Andrei Kirilenko, Chief Economist, and will report to the full Technology Advisory Committee.
Subcommittee members have not yet been named. In the interest of ensuring that the membership is comprised of qualified representatives from government agencies, industry, exchanges, academia, information technology, information systems, and groups representing interests or organizations involved with the development, design, and use of standardized data and/or affected by the standardization of data, the Commission is accepting nominations to the Subcommittee on Data Standardization.