1. Progress report on development of SDMX-based BOP DSD by Bernadette Lauro ECB/S/ETS Balance of Payments Working Group Luxembourg, 27 November 2012

2. 2 Outline Why SDMX for BPM6 Governance structure Content review of BOP DSD ( new Data Structure Definition) The SDMX-based data model Finalisation of pilot phase I Disposition log – issues for clarification/feedback Roadmap for adopting BOP-DSD Milestone 4 (implementation) and next steps

3. Progress report – Why SDMX for BPM6 SDMX (Statistics Data and Metadata Exchange) is an initiative to foster standards for the exchange of statistical information Scope: increase timeliness in data exchange and efficiency Sponsored by BIS, ECB, Eurostat, IMF, OECD, WB, UN Priority areas for an SDMX-DSD: SNA and BOP 3

4. Progress report – Governance structure for the BOP-DSD 4

5. Progress report – Content review of BOP DSD V01 Pilot test launched in June 2012 – 27 countries involved Purpose of the pilot: codes review/mapping internal data processing/highlight issues; mainly database management-oriented Disposition log to summarise actions that will be undertaken Separate FDI DSD, with 16 dimensions, o.w. some common dimensions shared with BOP DSD 5

6. Progress report – The SDMX-based data model (dimensions) V0.1 Dimension nameDescription of the dimension FrequencyTime series frequency (e.g. monthly) Reference areaReference country (or area) code (e.g. Portugal) Adjustment indicator Specific adjustments or concepts for the time series (e.g. seasonal adjustment) Flow stock entryFlow or stock variable indicator (e.g. positions) International accounts itemExternal statistics item classification (e.g., financial account) Accounting entryType of flow or stock in relation to the reference area (e.g. assets) Counterpart areaCountry (or area) of counterpart (e.g. Japan or rest of the world) Reference sectorInstitutional sector in the reference area (e.g. general government) Functional categoryClassification by function of the financial investment (e.g. reserve assets) Instrument and assets classification Breakdown by financial instrument (e.g. debt securities) Maturity Maturity of financial item, original, remaining, or combination (e.g. short term) Counterpart sectorInstitutional sector of counterpart (e.g. general government) Currency of denomination Currency of issuance for financial items or invoicing for goods and services (e.g. euro) ValuationValuation method of the underlying series (e.g. market value) Unit of measureUnit of measure used for reporting the time series (e.g. euro) 6 Basic info Non- financial account excl. Investment income Financial account +investment income Complementa ry info

7. Progress report – The SDMX-based data model V0.1 (attributes) Attribute nameDescription of the attribute Reporting Requirement Attachment Level Unit multiplier Indicates whether the unit of measure for the series represents thousands, millions, …M Series DecimalsIndicates the level of precision for the seriesM Series Observation status Indicates whether the value is a normal value, provisional data, a forecast, …O Observation Publication statusIndicates the publication status of the seriesM Series Confidentiality Status Indicates whether an observation is freely available, restricted, confidential,…O Observation Time FormatSpecifies the format used for describing the reference periodO Series Compiling organization Identifies the organization responsible for the compilation of the seriesO Series 7 M= Mandatory O= Optional.

8. ..more attributes needed for data dissemination (to be agreed) 8 Attributes Attachment LevelC/MConcept MnemonicConcept NameCode List Mnemonic Presentation Type (Code list/Free Text) SiblingCTIME_FORMATTime FormatCL_TIME_FORMATTime Format ObservationMOBS_STATUSObservation statusCL_OBS_STATUSObservation status code list ObservationCCONF_STATUSConfidentiality StatusCL_CONF_STATUSConfidentiality status code list ObservationCCOMMENT_OBS Comments to the observation value Free text up to 1050 char. so far. Increasing the values will be necessary. SiblingMUNITUnitCL_UNITUnit code list SiblingMUNIT_MULTUnit multiplierCL_UNIT_MULTUnit multiplier code list SiblingM COMMENT_GRP or COMMENT_SBL Detailed description of the group of seriesFree text up to 1050 char. SiblingMDECIMALSDecimalsCL_DECIMALSDecimals code list Time seriesMTIME_PER_COLLECTTime period collectionCL_TIME_PER_COLLTime period collection code list SiblingCCOMPILING_ORGCompiling organisationCL_ORGANISATIONCompiling organisation code list Sibling O COMMENT_SBG Sibling Description of the series SiblingCTITLETitleFree text up to 70 char. SiblingCDATA_COMPTitleFree text up to 1050 char. SiblingCCOVERAGETitleFree text up to 350 char. Time seriesCPUBLICATIONTitleFree text up to 1050 char.

9. Finalisation of pilot phase I 9 October 2012: 122 comments processed via disposition log file – overall positive feedback Actions triggered by disposition “accepted”: –Addition/Deletion of codes –Change in descriptors and validation rules –Address best solutions Actions triggered by disposition ”for clarification”: –Review of cross-domain lists by NA DSD SG and SDMX SWG (REF_AREA, REF_SECTOR, CL_CURRENCY, CL_FREQ) –Treatment of “fiscal year”

10. Benefits BOP DSD and SDMX 10 Uses SDMX hierarchical code lists to create relationships between codes Address validation rules Institutional sector code list -- CL_SECTOR CodeDescription S1Total economy S11Non financial corporations S11001Public non financial corporations S11002National private non financial corporations S11003Foreign controlled non financial corporations S12Financial corporations.. Integrity Rule CodeDescription S1Total economy S1=S11+S12+S13+S14+S15

11. Disposition log – issues for clarification (1) (ID 20) ACCOUNTING ENTRY: 11 AAssets (Net Acquisition of) A=AI-AD AIGross acquisition of assets ADGross sales of assets LLiabilities (Net Incurrence of) L=LI-LD LIGross incurrence of liabilities LDGross decrease in liabilities NNet (Financial Assets minus Liabilities) N=A-L FC inflows FD Outflows Specific for reserve assets Mnemonic codes

12. Disposition log – issues for clarification (2) (ID 22) National vs community concept (i.e. BOP vs ST1 data): use of different data set identifiers (DSIs) (ID 46) ECB Guideline’s requirements will be provided in BOP DSD format with example codification (ID 105) Banknote denomination dimension for future reporting of euro banknote shipment with separate DSD 12

13. Disposition log – Issues for clarification (3) (ID 89) Other changes in volume = KA Possible transmission of data not required in ECB/2011/23 13 TTransactions LEPositions (Stocks) KChanges in positions other than transactions K= KA + K7 KAOther Changes in the volume of Assets/Liabilities = Other changes excluding revaluations K7Revaluations K7= K7A+K7B K7A Revaluations due to exchange rate changes K7B Revaluations due to other price changes

14. Feedback received on practical issues (1) Cross-domain issues: View on fixed versus variable codes in your collection/compilation/transmission system: »The variable code length is not a problem for countries, however the maximum length of codes must be defined and remain stable; 14

15. Feedback received on practical issues (2) (ID 16) PUBLICATION STATUS – attached at the series, not at the observations level. Go back. Go back. Set by the provider Conditional (voluntary): provider needs to flag if they want the receiver not to publish Allows receiver to manage secondary confidentiality Easier for the provider to monitor the publication of a series than of an observation 15 CodeDescription Ppublishable Nnon-publishable

16. Feedback required on practical issues (2) Confidentiality of the observation conditional to status of the series –the series is flagged as non-publishable: then no observations can be free »Priority over OBS_CONF –the series is flagged as publishable: then, if some observations are not to be published, they should be flagged through the confidentiality attribute –This means that the proposed code “Under embargo” is redundant: 16 CodeDescription PPublished NNot published EUnder embargo

17. Next Steps Finalisation BOP DSD V0.1 by early December 2012 Launch pilot phase II with Sandbox in December 2012 Beta version of the Sandbox to provide registry, database, user-interface to submit datafile Development of final version BOP DSD V0.2 by end- December. 17

18. Next Steps (cont’d) Workshop WG ETS on practical issues (Feb2012) »WG SIM members invited to participate/contribute to the data exchange session Written communication with BOP domain groups on BOP DSD V0.2 and associated reporting arrangements (Jan-March 2013) In parallel, SDMX review of cross-domain codelists BOPCOM to approve BOP DSD V0.3 in Spring 2013 18

19. 1920141312 11 2010 1. PREPARATION Roadmap for adopting BOP-DSD 2. DEVELOPMENT 5. PRODUCTION AND MAINTENANCE 4. IMPLEMENTATION 3. CONSULTATIONS AND ACCEPTANCE Q2 24 Jan June 2013 Final BOP DSD Pilot phase I BOP DSD V01 Q3 Pilot phase II BOP DSD V02 Start regular data exchange Jan

20. 20Spring2013Jan13Dec Nov 2012Q2 FINALISATION BOP DSD V01 Milestone 4 – Implementation go back go back BOP DSD V02 PILOT TEST 2 (Sandbox) BOP DSD V03 DETAILED IDENTIFICATION OF REPORTING ARRANGEMENTS, DATA FLOWS, CONSTRAINTS Adaptation of the production systems Pilot projects Release (SDMX registry) 2013Q3 Feb 2012: WG ETS WORKSHOP on practical issues on DSD codification and data exchange – for participation of WG SIM members as well! Review by SDMX SWG of cross-domain codelists

21. 21 Thank you for your attention Please provide feedback to: Bernadette.lauro@ecb.europa.eu BOP_IIP_Stats@ecb.europa.eu The views expressed in this presentation are exclusively those of the author