OSTTRA helps FIA define data standard for post-trade processing of exchange traded derivatives

Rick Steves

“The persistence of common data fields is the key to unlocking efficiency in the current ETD post-trade workflow. This is the clear next step on the roadmap for evolutionary change in ETD and illustrates further tangible support for the DMIST initiative.”

OSTTRA is working with FIA’s Derivatives Market Institute for Standards (DMIST) members to identify a data standard for post-trade processing of exchange traded derivatives (ETD), the firm confirmed.

Home of MarkitServ, Traiana, TriOptima and Reset, OSTTRA brings processes and networks together along with the expertise to solve post-trade challenges in the global financial markets.

Common data standard in ETDs for quality, efficiency, reduced systemic risk

The global post-trade solutions company has provided data to help the industry define a common data standard aimed at increasing data quality, creating operational efficiency, and reducing systemic risk by minimizing breaks on trade date.

Both organizations have been working with key industry participants to identify the data set required at five stages of the ETD post-trade workflow, from voice trade recaps to clearing broker booking confirmations, addressing the most persistent causes of trade breaks.

The contributions from OSTTRA have resulted in significant progress in defining this data standard, which will support the DMIST draft standard on timeliness currently under review by the industry.

Unlocking efficiency in the current ETD post-trade workflow

Don Byron, Head of Global Industry Operations & Execution, FIA, said: “Building on our initial timeliness standards set out in the first phase of DMIST, it’s become increasingly clear that data standardisation is fundamental to completing the transformation of ETD post-trade workflows. The work is uniting key market participants around a common set of data fields, bringing us closer to valuable efficiencies in ETD markets, as outlined in our recent DMIST annual report.”

Joanna Davies Head of FX and Securities, OSTTRA, commented: “The persistence of common data fields is the key to unlocking efficiency in the current ETD post-trade workflow. This is the clear next step on the roadmap for evolutionary change in ETD and illustrates further tangible support for the DMIST initiative. We will continue to work within the FIA DMIST framework to further refine the dataset that will contribute to the core requirement of any suggested standard.”

Samina Anwar, Global Derivatives Operations Director for Cargill added: “The adoption of common data fields in ETD is the next step toward reducing hedging risk through data standardisation for voice trading. We’re delighted that market participants are working together to reach this milestone, which presents real practical progress in the effort to foster cross-industry engagement on the DMIST 30/30/30 standard.”

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