J.P. Morgan announced that its derivatives business is using the Fintech Open Source Foundation (FINOS) Common Domain Model (CDM) and ISDA Digital Regulatory Reporting (DRR).
“As part of our commitment to leveraging open source technologies securely and compliantly, we’re proud to be the first major US bank to implement CDM/DRR as a primary reporting mechanism,” J.P. Morgan wrote in a statement.
The Common Domain Model is an open source standard – a type system for derivatives of sorts – which facilitates financial product/event representation via a machine-executable Domain Specific Language (Rune DSL). The CDM has been constantly evolving through industry collaboration since its first release in 2018, with version 5 now offering a rich set of business use cases.
Developed with oversight and contributions from key market participants in the financial services landscape, including the International Swaps and Derivatives Association (ISDA), the International Capital Market Association (ICMA), and the International Securities Lending Association (ISLA), CDM has been distributed under an open source license.
Digital Regulatory Reporting (DRR) is built on the Common Domain Model (CDM) at its core to provide Regulatory Reporting functionality across multiple jurisdictions. Developed by ISDA in conjunction with industry participants, it provides a codebase to create and validate regulatory reports via the CDM through human readable rules.
“ISDA DRR has a mission statement to mutualize the cost of compliance within the regulatory reporting space. In the rapidly growing regtech sector, it was important to choose a solution that was backed by industry consensus and contribution. DRR being built to leverage the open-source Common Domain Model presented a unique opportunity to not only transform our regulatory reporting function but also lay the foundations for future CDM business use cases and integration,
“Our goal was simplification within the regulatory reporting landscape, which has evolved constantly and rapidly over the last decade. DRR is already providing transformative efficiencies for both technology and operations, and we are excited to continue our roll-out across future jurisdictions,” according to the statement.