LONDON, 09 March, 2023 – OSTTRA, the global post-trade solutions company and a member of the FIA’s Derivatives Market Institute for Standards (DMIST), confirmed they are working with fellow DMIST members to identify a data standard for post-trade processing of exchange traded derivatives (ETD). Significantly, as part of this process, OSTTRA has provided data & analysis that takes the industry much closer to defining this standard, as detailed in the soon to be released DMIST Annual Progress Report for 2023.

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 and DMIST have been working with key industry participants to identify 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 significant progress in defining the data standard, which will support the DMIST draft standard on timeliness currently under review by the industry.  Together, these standards represent a significant step towards increasing efficiency and resiliency in ETD markets.

Don Byron, Head of Global Industry Operations & Execution, FIA, said: “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.  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, OSTTRA, commented: “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.”

Samina Anwar, Global Derivatives Operations Director for Cargill added: “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.”

If you’d like more information on the work OSTTRA is undertaking with the industry to achieve efficiencies in ETD trade processing, please contact us.