The International Swaps and Derivatives Association (ISDA) has published an initial digital representation of the Common Domain Model (CDM), opening the way for all ISDA members to access and test the model on various new technologies. The ISDA CDM 1.0 provides a standard digital representation of events and actions that occur during the life of a derivatives trade, expressed in a machine-readable format. Using this common standard will enhance consistency and facilitate interoperability across firms and platforms, irrespective of the programing language ultimately used for each technology.
The ISDA CDM is intended to provide an industry standard blueprint for how derivatives are traded and managed across the lifecycle, and how each step in the process can be represented in an efficient, standardized fashion. Establishing a common set of data and processing standards will facilitate interoperability between firms and technology platforms. Eventual benefits of the ISDA CDM include:
- Provides a common foundation for new technologies like distributed ledger, cloud and smart contracts to facilitate consistency and interoperability.
- Reduces the current need for continual reconciliations to address mismatches caused by variations in how each firm records trade lifecycle events.
- Enables consistency in regulatory compliance and reporting.
Further information is available in the following materials:
ISDA Video: What is the ISDA CDM? (November 2017)
ISDA Webinar: Introducing the ISDA Common Domain Model (October 2017)
The Future of Derivatives Processing and Market Infrastructure (September 2016)