Two Jurisdictions, One Common Data Model
Project Ellipse explores how stakeholders can gain an understanding of the requirements needed to shift to digital reporting, without needing to commit and invest significant resources upfront. For Project Ellipse, we adopted the following approach to explore the concept of cross-border digital reporting:
- 1.Taking two authorities from different jurisdictions, to see if a common understanding of data reporting needs could be achieved cross-border and between two different reporting regimes. In this POC, the authorities were the BoE and the MAS.
- 2.Working on a narrowly defined and small use case for a regulated product that was common to both authorities. We used a subset of reporting requirements for retail mortgage loans.
- 3.Using an existing industry data model to test its extensibility to a different product domain to see if the components and attributes could be repurposed. We tested the Common Domain Model (CDM) developed by the ISDA, which is an open-source machine executable data model.
Data standards, taxonomies and data models are integral for digital reporting and for enabling data-driven analytics. To demonstrate that the utility of common data standards and models extends beyond nationally specific contexts, Project Ellipse explores whether authorities in different jurisdictions could also come to a common understanding of data for regulatory reporting purposes. This is because reporting platforms built on common data models offer the possibility that global financial reporting entities can fulfil different cross-border reporting obligations using a common input layer. This could reduce compliance burdens placed on those financial institutions to respond to template-based regulatory reporting requests from different supervisory regimes. It could also enable home and host supervisors of these global reporting entities to compare exposures in a more consistent and transparent way.