Promoting “interoperability” by the establishment of joint data standards for financial regulatory data is the aim of a final rule issued Thursday by the five federal financial regulatory agencies.
The rule, which applies the Financial Data Transparency Act of 2022, affects certain collection of information reported by the institutions regulated by the agencies and data collected for the Financial Stability Oversight Council (FSOC). The standards do not affect, the agencies said, to collections of information until the agencies separately adopt the standards by rulemaking or other action.
Joining the financial institution regulators in issuing the joint final rule were the Federal Housing Finance Agency (FHFA), the Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), and the Department of Treasury.
Proposed nearly two years ago, the rule requires agencies to adopt standards that must (to the extent possible):
- Render data fully searchable and machine-readable;
- Enable high quality data through schemas, with accompanying metadata documented in machine-readable taxonomy or ontology models, which clearly define the semantic meaning of the data, as defined by the underlying regulatory information collection requirements;
- Ensure that a data element or data asset that exists to satisfy an underlying regulatory information collection requirement be consistently identified as such in associated machine-readable metadata;
- Be nonproprietary or made available under an open license;
- Incorporate standards developed and maintained by voluntary consensus standards bodies; and
- Use, be consistent with, and implement applicable accounting and reporting principles.
According to Thursday’s announcement, the final rule establishes the standards as proposed in 2024. However, there are some differences, the agencies said. The final rule:
- Does not establish the proposed joint standard of the Financial Instrument Global Identifier for the identification of financial instruments;
- Clarifies that International Organization for Standardization (ISO) 10962, Securities and related financial instruments — Classification of financial instruments (CFI), is to be used in the classification, rather than identification, of financial instruments that are not swaps or security-based swaps;
- Continues to establish ISO 8601, Date and time format, for dates, but without reference to the basic format option; and
- More explicitly states that the agencies may tailor the data standards that they ultimately adopt or adopt data standards not established in the joint final rule.
Financial Data Transparency Act of 2022: Final Rule
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