As part of the Action on 'Promoting semantic interoperability amongst the European Union Member States (SEMIC)’ of the ISA² Programme, the European Commission supported DG FISMA to increase standardisation in financial data reporting.
The financial institutions in the European Union are obliged to comply with different reporting regulations. Financial data reporting is not harmonised, increasing costs due to numerous legal reporting requirements and adding difficulty to the aggregation of risk data and market monitoring. In response to this, DG FISMA and the ISA² Programme aim to increase the reusability and interoperability of financial data by assessing the potential for further standardisation in this area.
The ISA² Action on 'Promoting semantic interoperability amongst the European Union Member States (SEMIC)’ supported DG FISMA to list and define the data points characterising a derivative product:
1. From a business perspective, namely the basic characteristics of a derivative product taking into account the life cycle of such a product;
2. From a prudential (not accounting) reporting perspective, by taking the example of two regulatory reporting periodically sent by a financial institution to the supervisor.
The analysis of the regulations started with an example-based approach, focusing on derivative products and reporting requirements from COREP, EMIR and the ISDA Master Agreement Confirmation.