Sorting Through Sibos Alphabet Soup
The takeaway from this year's Sibos, Swift's annual conference based on payments and securities messaging and related issues, concluding today in Toronto, could be that the industry, to a casual observer not enmeshed in its inner workings, faces a confusing tangle of alphabet soup.
By alphabet soup, I mean the variety of regulatory bodies, industry associations, standards bodies, and standards themselves for various different functions in the securities industry. There's LEIs (legal entity identifiers), which Inside Reference Data has covered extensively since the US Treasury's OFR (Office of Financial Research) started its drive to have the industry begin using the standard in 2012. There's Emir (European Market Infrastructure Regulation), which like LEI, is intended to reduce risk and improve risk management by the industry.
At the same time, the industry is still trying to grasp central clearing of OTC derivatives through central counterparties (CCPs), move messaging from the ISO 15022 standard to the updated ISO 20022 standard and make use of XBRL (eXtensible Business Reporting Language). Business identifier codes (BIC) figure into the LEI efforts, and LTIDs (large trader identifications), are a completely separate coding to be implemented next year, wholly separate from LEI efforts. Industry representatives will be watching next week as the G-20 itself takes on LEI issues in a workshop in Basel, with the EDM Council association representing financial firms, service providers and others, planning to play a role in the discussions.
Omgeo's director of industry relations, Tony Freeman, interviewed at Sibos on the unexpected effects LEI will have on the industry, wonders why the financial industry cannot emulate other industries with more consolidated and singular standards. ICANN regulates IP addresses globally, so there aren't disputes between nations over internet protocols; the airline industry, for all its woes, has globally accepted runway standards, with consistent symbols and markings worldwide. Those are just a couple examples Freeman points out.
Online and in print in our next issue, Inside Reference Data will report on and sort through developments among the acronyms as seen and heard at Sibos, and beyond.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
SGX’s new FX platform sees increased NDF trading from US firms
Sef exemption opens door to increased US buy-side interest
ICE to offer ultra-low latency data between the US and Europe
The offering will run eastward, connecting routes in the US with European markets in London, Frankfurt, and Bergamo.
Vendors under new scrutiny in CFTC due diligence push
The planned cyber resilience regime will force dealers to subject “critical” tech vendors to stricter audits.
Integration looms large for buy-side firms deciding on whether to buy or build
As high-speed trading systems become par for the course, asset managers turn their focus to integration capabilities, according to a new study.
Refinitiv’s PermIDs: Converting needs into opportunity
Refinitiv’s PermID framework was conceived as a proprietary tool to address an internal challenge around identifying objects in the firm’s information model. Once it had proved its worth, it was rolled out to the firm’s clients to significant success.
FX-style crypto platforms could bridge gap with TradFi
Emergence of execution-only ECNs, prime brokers and clearing houses brings new confidence in crypto
Technology trends in capital markets: Transforming the sell-side FX front office
The capital markets landscape is witnessing a technological revolution – a wave transforming the sell-side FX front office. Firms such as smartTrade Technologies are at the forefront of this transformation, leveraging technologies such as artificial…
Locking down the lifecycle: Trading Technologies turns to analytics and TCA in latest acquisition
The tech provider gains TCA, analytics, and algo optimization tools as established vendors vie to build more comprehensive platforms.