CPMI-IOSCO to Hold Workshop on Global Standard for Derivatives

ISDA reports that the Committee on Payments and Market Infrastructure ("CPMI") and IOSCO will hold a workshop on the development of global data standards for derivatives. In its online derivatiViews commentary titled "MiFID II: Wait for CPMI-IOSCO on Product Identifiers," ISDA detailed that the workshop will focus on (i) unique transaction identifiers, (ii) unique product identifiers and (iii) other data elements.

ISDA Chief Executive Officer Scott O'Malia commented that despite this effort to globalize standards, the risk of fragmentation remains. He stated that the European Securities and Markets Authority ("ESMA") recently chose ISIN numbers as the sole identification standard under the revised Markets in Financial Instruments Directive/Regulation (MiFID II/MiFIR) without waiting for the results of the CPMI-IOSCO discussions on harmonization. The final draft regulatory technical standards were published in September last year – after CPMI-IOSCO had begun its harmonization initiative – and currently are being reviewed by the European Commission. The risk, he warned, is that the MiFID II/MiFIR requirements might fail to reflect the final global recommendations by CPMI-IOSCO.