In October the International Swaps and Derivatives Association (ISDA) published a conceptual version of its Common Domain Model (CDM), which will provide a new, industry standard for data and processes across the full range of derivatives trading and management across the lifecycle. This common set of standards will facilitate exchanges between firms and also has the potential to significantly increase automation. This is crucial today, when many organizations are at a crossroads, with timing, accuracy and efficiency more important than ever, but many current infrastructures now old and complex and still reliant on manual reconciliation.
Specifically, the ISDA CDM will eventually lead to the following benefits:
- Consistency and interoperability via a common foundation for new technologies (e.g. distributed ledger and smart contracts)
- Consistency in regulatory compliance and reporting
- Reduction of the need to reconcile address mismatches due to variations in trade lifecycle event recording
As a SmartDX customer, this is an important development, as once implemented, the CDM has the potential to become the central part of templates and document tools, to ensure consistency regardless of integrations between systems and linking pre- and post-documentation processes together. SmartDX was developed with data in mind, in fact the data in the documents is the foundation of our offering. SmartDX customers are already familiar with the benefits generated by linking pre- and post-trade processes, so the opportunities created by the CDM are exciting. As this process evolves, we will stay close to the action and will share our expertise and assist where possible.