1. The need for worldwide financial market standards
Aurel Schubert
Director-General Statistics, ECB
Hansjakob Schlaich
Adviser DG Statistics, ECB
Who trades what? Who holds what? Who holds which risk? Who is exposed to which counterparties? Who …
The need for worldwide financial market standards

2. […] Finance is a global business, and both the regulation and the underlying data requirements for global institutions would benefit from more harmonisation worldwide. Concrete steps towards standardisation include the establishment of mandatory requirements regarding the use of the International Securities Identification Number and the global Legal Entity Identifier […] - Mario Draghi, ECB Statistical Conference 2016
Who trades what? The need for worldwide financial market standards

3. The need for cross-border standards
Sharing of data Increasing amount and variety of microdata Transactional, banking supervision and statistical data, credit cards data, wire services etc.
Public action Policy making, reporting, regulation, managing risks
Issue - Risk “Local” standards - limited to certain use cases Missed business opportunities and high(er) costs
Who trades what? The need for worldwide financial market standards

4. Standardisation Agenda?
Source:

5. Agree on common concepts
Technical Define common data standards, harmonise concepts, introduce cross-border identifiers (LEI, UPI, UTI, ISIN)
Legal concepts Facilitate common governance e.g. CRR III, ESA 2010 (macrodata)
Cultural challenges Public action, balance needs, align different perspectives
From the source to final use – consider the full data value chain
Who trades what? The need for worldwide financial market standards

6. Contribution of the ECB
Europe Bank Integrated Reporting Database (BIRD), European Reporting Framework (ERF), Single Data Dictionary (SDD) Analytical Credit Dataset (AnaCredit) Money Market Statistical Reporting (MMSR) Prospectus Directives
World Financial Stability Board (FSB, e.g. CPMI-IOSCO WG) Basel Committee on Banking Supervision (BCBS) International Organisation for Standardisation (ISO) Universal Financial Industry message scheme (ISO / TC 68)
Who trades what? The need for worldwide financial market standards

7. Cross boarder identifiers
Application
Cross boarder identifiers
Legal Entity Identifier (LEI) Reference and in future Relationship data
Unique Product Identifier (UPI) Unique Transaction Identifier (UTI)
Under development in particular OTC derivatives
Mandatory use will increasing coverage significantly – e.g. EMIR regulation, security prospects, etc.
DG-Statistics participation promotes:
detailed and clear guidance
good practices of statistical reporting and database management
design of solutions, which are technically feasible and work in practice
consistency
Who LEI
Trades UTI
What UPI
Who trades what? The need for worldwide financial market standards

8. The Legal Entity Identifier – Progress of Registration
Application
The Legal Entity Identifier – Progress of Registration
466,832 Identifiers
Who trades what? The need for worldwide financial market standards

9. Conclusion
Perspective Requirement to use and integrate microdata necessitates worldwide financial market standards
Development ECB and ECB Statistics promote: detailed and clear guidance, best practices for reporting, synergies, consistency, technically feasible and practical solutions
Engage Statistical stakeholders - public organisations, academia and industry, foster collaboration, need to join forces
Who trades what? The need for worldwide financial market standards

10. Questions and Answers

11. Further Reading
Second Phase of the G20 Data Gaps Initiative (DGI-2): First Progress Report
Financial integration in Europe, 2016 April. European Central Bank Chapter 3, page 75
Welcome Address to the Eighth ECB Statistics Conference by Mario Draghi
Bottega, John A., and Linda F. Powell. "Creating a linchpin for financial data: Toward a universal legal entity identifier." Journal of Economics and Business 64.1 (2012):
CPMI-IOSCO, Harmonisation of key OTC derivatives data, Consultative report (2015), page 2-3.
BIRD (Banks Integrated Reporting Dictionary): banks-integrated-reporting-dictionary.eu
Opinion of the ECB on the prospectus directives (CON/2016/15)
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12. Appendix
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13. Need for global standards at the ECB
Rapid expansion of demand and availability of data
ECB’s Monetary Policy
Banking Supervision (SSM)
E(S)CB
Macro prudential policies (ECB, ESRB)
Setting Global Standards for Granular Data, 2nd OFR/BoE/ECB workshop, October 2015

14. Financial Markets Data Standards
ECB-UNRESTRICTED
An Overview
Setting Global Standards for Granular Data, 2nd OFR/BoE/ECB workshop, October 2015