The International Securities Lending Association (ISLA), a leading industry trade association representing the common interests of securities lending and financing market participants across EMEA, is delighted to announce the contribution of the code produced during the Securities Lending CDM Pilot, completed in 2020 in conjunction with REGnosys, to the core CDM codebase. This marks the first time components of a non-derivative product have been contributed to the CDM, and is an important milestone in the ongoing development of a truly cross-product model for the benefit of the financial services industry.
A Common Domain Model, or a CDM encodes a transaction and the events that can occur to that transaction explicitly and unambiguously, so that common inputs lead to common outputs throughout the lifecycle of a transaction. Ultimately, a CDM would encode the entirety of the life of a transaction from onboarding, contract negotiation, execution, processing and ultimately termination.
The code comprises the securities loan product and transaction definitions, as well as a settlement and allocation event for a cash settled DVP loan. Demonstrations of these events, the interoperability between vendor platforms, and discussions on the benefits of the CDM for the industry can be found here.
Andrew Dyson, CEO, ISLA commented “I am absolutely delighted that we are now able to begin the process of sharing the power of the CDM with our wider community. The addition of our pilot work from last year within the core CDM is a clear statement of intent from ISLA and our friends at ISDA. As we progressively develop the combined open source cross product CDM, market participants will start to see the benefits of this important investment that will set the backdrop for the future state of our markets.”
Leo Labeis, CEO, REGnosys “We are delighted to have worked with ISLA on their Securities Lending CDM Pilot, and that contribution back into the core CDM demonstrates the value of collaborating in an open source framework. This Securities Lending addition is proof of the extensibility of the original CDM design, and some functional components will directly benefit other users beyond the Securities Lending market.”
“Having securities lending products and events added to the CDM is an important step in our shared ambition to create a single set of machine-readable standards that can be used across asset classes. This will ultimately increase efficiencies for market participants, reduce costs and enable greater levels of automation. We look forward to working with ISLA and others to further develop the CDM,” says Scott O’Malia, Chief Executive, ISDA.