One of the longest standing and intractable impediments to global straight-through-processing in the financial services industry has been the proprietary and non-standard nature of reference data. Regulators were made aware of this while rummaging through the collapsed ‘basement’ of Lehman Brothers and trying to determine who was Lehman, what was its financial exposure and who had been put at risk by Lehman’s bankruptcy.
The CCDM is described in this research note as a global facility administered by a global standards setting body that assures the completeness, accuracy, security and accessibility of legal, client, instrument, contract and transaction identities and their associated reference data. Its establishment is proposed as an industry sponsored, government regulated global standards setting body that maintains a virtualized distributed database connected through an intelligent secure federated network acting as a global repository of standard datasets for use in financial transactions.
The CCDM organizes and maintains standard product (Unique Product Identifier – UPI) and legal entity (Legal Entity Identifier – LEI) codes; transaction identification calculation algorithms; and data tags and reference datasets that are used in: reporting financial transactions to regulators; in aggregating financial transactions; and in assuring settlement amongst counterparties.
The CCDM is the global center for managing and overseeing established and new data standards. The resultant datasets are registered and catalogued with the CCDM.
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Number of Figures = 8