FpML provides a robust technical framework for global regulatory reporting requirements.
We are strong proponents of standardization and strong believers that the use of industry standards such as FpML reduces costs, increases efficiencies and, in the case of reporting, leads to better data quality and facilitates data aggregation. We also note that the engagement with regulators in the US, Europe and Asia on various reporting requirements through the FpML Regulatory Reporting Working Group (FpML RPTWG) has been very beneficial.
We analyse reporting requirements in different jurisdictions and continue to enhance the reporting framework to provide global consistency where possible while taking into account specific regulatory requirements. As part of the analysis we publish a global regulatory reporting mapping spreadsheet comparing FpML coverage to the reporting requirements in various jurisdictions.
In response to the G-20 reporting requirements for OTC derivatives following the financial crisis, FpML has developed a reporting framework that can be leveraged for reporting in multiple jurisdictions. A core design principle has been to implement a robust technical framework that could be leveraged by global regulators as new regulations become available. To that effect we have tracked requirements that are specific to a particular reporting regime in a structure that accommodates the needs of multiple regulators.
Today all US trade repositories either use FpML or are in the final stages of providing FpML support and FpML is used for reporting in several other jurisdictions. Interoperability with other regulations and jurisdictions continues to be a focus for FpML.
The Reporting Working Group welcomes contributions from all, includes broad industry participation, and close collaboration with regulators. The group has met on a weekly basis for the past five years allowing it to develop a sound, timely, industry-driven solution, in advance of the regulatory deadlines. As new regulations become available, FpML provides an robust, open technical framework which can be leveraged and expanded by regulators worldwide.
- CFTC – U.S. Commodity Futures Trading Commission
- ESMA – European Securities and Markets Authority
- SEC – U.S. Securities and Exchange Commission
- Asia, Canada, Australia, Russia and Other Regulators