FIA Partners with Osttra for Data Standards

The FIA’s Derivatives Market Institute for Standards (DMIST) has revealed its members are working with post-trade specialist Osttra to identify a data standard for post-trade processing of exchange traded derivatives (ETD), with Osttra providing data and analysis.

The application of a common data standard is required to increase data quality, create operational efficiency, and reduce systemic risk by minimising breaks on trade date, Osttra says, adding the work is aimed at identifying the data set required at five stages of the ETD post-trade workflow, from voice trade recaps to clearing broker booking confirmations, addressing the most persistent causes of trade breaks.

Data and analysis from Osttra-led sessions with other DMIST participants has been contributed to DMIST’s data and information working group, resulting in what the firm calls “significant progress” in defining the data standard, which will support the DMIST draft standard on timeliness currently under review by the industry.

“Building on our initial timeliness standards set out in the first phase of DMIST, it’s become increasingly clear that data standardisation is fundamental to completing the transformation of ETD post-trade workflows.” Says Don Byron, head of global industry operations and execution, FIA. “The work is uniting key market participants around a common set of data fields, bringing us closer to valuable efficiencies in ETD markets, as outlined in our recent DMIST annual report.”

Joanna Davies head of FX and securities at Osttra, adds, “The persistence of common data fields is the key to unlocking efficiency in the current ETD post-trade workflow. This data standard is the clear next step on the roadmap for evolutionary change in ETD processing and illustrates further industry collaboration around the DMIST initiative. We will continue to work within the FIA DMIST framework to refine the dataset that will contribute to the core requirement of any suggested standard.”

The work has been welcomed by Cargill, where Samina Anwar, global derivatives operations director for the firm, says, “The adoption of common data fields in ETD is the next step toward reducing hedging risk through data standardisation for voice trading. We’re delighted that market participants are working together to reach this milestone, which presents real practical progress in the effort to foster cross-industry engagement on the DMIST 30/30/30 standard.”