Architecting Trusted Open Data Ecosystems: Interoperability of Data Standards, Technologies and Methodologies

Architecting trusted open data ecosystems: interoperability of data standards, technologies and methodologies

Risk management, interoperability and information standardization: XBRL, a commitment from the institutions and the financial sector

Interoperability and financial entities

17 November 2016 XBRL Spain | Spanish Business Register | Madrid Michal Piechocki Director at XBRL International Board of Directors Chairman of Frankfurt Group Technical Workshop hosted by the ECB

Frankfurt Group Technical Workshop Overview of EU initiatives and trends § Solvency II § SFT § AIFMD § BSI-MIR § CRD IV (Basel II) / CRR § AMLD IV § EMIR § IFRS § ESEF § Integrated reporting § MiFID II/MiFIR § BCBS 239 § SHS § T2S § MMSR § ECB Statistical Data Dictionary & BIRD § AnaCredit § European Reporting Framework

Trends and directions: • Unstructured data combined with structured • Dictionaries • Trade repositories • Identifiers and reference data • New technologies (blockchain, DLT) • Data ecosystems not siloses • Combination of statistical and supervisory data • Granular data • Accesibility to datA (OpenAPIs) • Analysis (network, big data)

Frankfurt Group Technical Workshop Data ecosystems components Standards: § ISO20022, FpML, FIX, MISMO, XBRL, DPM, RIXML, IFX, OFX, BPM6, SDMX, SDDS, MDDL, ACORD Projects: § FIBO, ACTUS, DPM2ISO, SMCube Identifiers: § Product: UPI, ISIN (ISO 6166, ISO18774), Alternative Instrument Identifier, CUSIP, NSIN, FIGI (Bloomberg), RIC (Reuters) § Entity: LEI (ISO 17442), MFI Code (ECB), IBAN (ISO 13616), BIC (ISO 9362), MIC (ISO 10383) § Transaction: USI, UTI (CPMI-IOSCO, ISDA)

Frankfurt Group Technical Workshop Financial institutions data flows

Frankfurt Group Technical Workshop 4 Levels and connections of financial data ecosystems

Past Present Future

Law: Local International Single (data in regulations) regulations standards approach?

Logic: Dictionaries, Ontologies? (data description, Forms taxonomies semantics)

Technology: Data standards Open APIs? (data exchange and Programs XML-derivatives processing, syntax)

Repository: Distributed Databases (data storage and source Files ledger? of data for analysis)

Frankfurt Group Technical Workshop Trusted Open Data Ecosystems

Regulations

XBRL, SDMX, DPM, SMCube, DLT/BLOCKCHAIN ISO20022 SDMX-IM

Open data Open data Open data standards methodologies technologies

Open data Open data Open data identifiers architectures

OpenAPI, open Non/financial UTI, UPI, LEI repositories

Mobile Platform/Data/So Social acquisition / ftware as a Agile distribution engagement dissemination Service

Frankfurt Group Technical Workshop Data Standards Map

Identification Insurance / mortgage Market / trade DPM Universal / finance Research/ statistics

Abstraction RIXML

ISO 20022 XBRL

SDDS Transactional / Detailed Reporting / Aggregated LEI XBRL GL MDDL

IFX SDMX ACORD FIBO ACTUS FpML

CCS FIX Protocol MISMO Specialisation

Frankfurt Group Technical Workshop 7 Dictionaries (DPM) & interoperability with data technologies

Custom XBRL SDMX SQL New DPM is XML extensively used DPM has been Dedicated with XBRL tested with DPM has been relational custom XML Taxonomies for tested with database which a specific, Schemas for the ISO 20022 SDMX schemas schemas exist corresponding purpose of FpML for alignment of for DPM-based taxonomy ”flattening” of variables. metadata and architecture has multidimension data. been al metadata. developed.

Frankfurt Group Technical Workshop 8 Interactions between BIRD, ERF and SDD (AnaCredit example)

Source: ECB Frankfurt Group Technical Workshop 9 Statistical Data Dictionary details

• Newly developed methodology (called SMCube) is in line with most Methodological material syntaxes used (DPM, SDMX) • Relevant DPM and SDMX dictionaries are imported to SDD integration (common (constituting Non-referenced part od SDD) syntax for all the non- referenced dictionaries)

Semantic integration (is • Creation of referenced part of SDD dictionary • Mapping between existing concepts from Non-referenced the definition of „loan” dictionaries and newly created concepts in Referenced dictionary the same for statistical • Single Referenced dictionary being able to (i) reflect all reporting requirements and (ii) work as a „mapping layer between concepts and prudential from Non-referenced dictionaries frameworks?)

Frankfurt Group Technical Workshop 10 SDD structure

Non-referenced dictionaries (i.e. SDMX models Referenced dictionary reflected according to SMCube methodology)

CRD4/CRR LOAN (according to CRD4/CRR Framework)

BSI LOAN (according to CRD4/CRR Framework)

Other frameworks: LOANS AND ADVANCES ≠ LOANS THAT ARE NOT ADVANCES

AnaCredit RIAD CSD

SHS MIR

Frankfurt Group Technical Workshop 11 Technical introduction: blockchain & DLT

Frankfurt Group Technical Workshop Thank you Michał Piechocki [email protected]

Frankfurt Group Technical Workshop 13 How important each area of interoperability will be in the next 5-10 years?

Creation of harmonised dictionaries (e.g. DPM) 8.3

Distributed ledger technologies (blockchain) e e 7.2 c c n n a a Collection of more granular data t t 7.7 r po por m m Introduction of global identiﬁers i i

8.4 h w g i o L Technology enabling connectivity (e.g. OpenAPI) H 7.9

Electronic data standards (XBRL, SDMX, ISO20022) 9