Industry Adoption Scenarios for Authoritative Data Stores using the ISDA Common Domain Model
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In this paper, we explore opportunities for the post-trade industry to standardise and simplify in order to significantly increase efficiency and reduce costs. We start by summarising relevant industry problems (inconsistent processes, inconsistent data, and duplicated data) and the corresponding potential industry solutions (process standardisation, data standardisation, and authoritative data stores). This includes transitioning to the International Swaps and Derivatives Association (ISDA) Common Domain Model (CDM) as a standard set of digital representations for the events and processes throughout the lifecycle of a trade. We then explore how financial market infrastructures could operate authoritative data stores that make CDM business events available to broker-dealers, considering both traditional centralised models and potential decentralised models. For both models, there are many possible adoption scenarios (depending on each broker-dealer's degree of integration with the authoritative data store and usage of the CDM) and we identify some of the key scenarios.
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