ISDA Releases An Open Source DRR Model


The Digital Regulatory Reporting (DRR) methodology has been made fully open source by the International Swaps and Derivatives Association (ISDA).

The DRR model will be available to ISDA members and non-members to enable compliance with the CFTC’s (US Commodity Futures Trading Commission) revised swap data reporting standards.

Participants in the market have free access to the DRR, which offers a mutualized industry interpretation of the laws. Businesses can check to see if their own interpretation of the rules is consistent with the peer-reviewed industry version by using the DRR model as a basis for implementation.

The buy-side and sell-side companies, trade repositories, and technology providers were all closely involved in the development of the DRR.

In order to reduce the inconsistencies that can occur when each firm separately implements its own understanding of the rules, the effort uses the Common Domain Model (CDM) to translate a mutualized interpretation of the CFTC rule modifications into code.

The initial round of modifications to the CFTC’s swap data reporting structure are scheduled to take effect on December 5 and make it the first authority to embrace new international data standards.

Scott O’Malia, chief executive of ISDA, notes “The DRR represents a big step forward in bringing greater efficiency to regulatory reporting by establishing a collaborative, peer-reviewed interpretation of the rules that firms can either use as the foundation of their build, or to compare their reading of the rules with the industry view. This will result in better quality, more accurate and more consistent data reported to regulators.”


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