 Rwy'n cymryd ar gyfer gweithio gyda'r mynedd. Roedden nhw'n bosbermau, ac rydyn ni'n gwaith cyfreid, ac mae'n edrych yn gallu'n gweithio yr Hollwyrg validatedr. Mae Feon Actynd fel GAB anhins i'r dŵr, mae'n gweithio'r hollwyr phynol a gweithio'r gweithio'n gweithio'r hollwyr. Yn ymgyrch yng Nghymru â'r roli, mae gennym yn cyflwyng ynghylch yn ei angen ar gyfer y wneud. A sy'n bod yn dechrau yng Nghymru, As we met in the ISDROFISIS six years ago and really talked in depth about what does the right construct look like, how do we really want to build an industry standard for the industry to use and we really got down into the details of this idea of building blocks that allows us to really define the entire industry and the financial products that are used in the industry. talking about what is the CDM, but as a quick summary it really is an industry standard that defines all the financial products that the financial industry trade, but it goes one step further and also defines how we actually process life cycle events for those trades and positions. Actually earlier in the year I was at the ISDA AGM and the chairman of the CFTC said we really need clear data definitions and machine readable code. And I think that's absolutely what the CDM does and those of you who have been involved in the recent regulatory go live earlier this week as which I have been. Hopefully you'll start to see how we can use the common domain model to really help drive that. The other big benefit we wanted as we looked and started the CDM was how do we actually capitalise on the new technologies out there so blockchain and DLT and hopefully you'll start to see as we talk through over the next 20 minutes how that can be used as well. Before we get started hopefully you can see on the screen behind us we have three trade associations coming together so ISDA, ISLA and ICMA. So perhaps I'll get you all to introduce yourselves and then we'll get started. Thank you everyone. Hi I'm Georgina Jarrett from ICMA that's the International Capital Markets Association. We work very closely with CIFMA here in the US and look after the debt capital markets industry globally. Hi, good morning everyone. My name is Alan Milligan and I'm representing ISDA this morning classically at the derivatives side of business. My role at ISDA is Head of Data and Digital. How are you everyone? I'm Adrian Dale. I'm the Head of Regulation, Digital and Market Practices at ISLA which is the Security Learning Association. Excellent so let's get started. Perhaps you could take us through what's excited you most about the journey so far with the CDM perhaps we'll go in chronological order so let's start with you Alan. Thank you very much Theon. ISDA's been part of the CDM journey for five years. It's obviously not new to ISDA and it's particularly exciting where we find ourselves now with the CDM. It's extending the crosswalk coverage of CDM beyond just derivatives so securities and asset lending with ISLA, ICMA and more recently Finals. Over the last month we've seen some very exciting developments. We've seen a real world industry implementation of digital regulatory reporting. I think it was a press release some weeks ago from a member firm and that's an end-to-end test now in production for CFTC regulatory reporting. Of course the press announcement last week from Goldman Sachs. Perhaps you can touch upon that later Theon. Great, agent. I forgot what the question was there for a second. Luckily I've got notes. So our journey was a little bit different. We started off in 2019 with a series of papers called The Agenda for Change and we were looking at how the market was evolving and also the evolution of the technology at the same time and how we can combine those two aspects to improve the way the market operates. The conclusion was that we needed to have of course standards which is probably the most used word you're going to hear today across everything. Looking to what our fellow associations were doing as well it was quite obvious that that's where we needed the direction we needed to go in. So all of those papers actually are online and we produced another one just very recently actually. It's on the ISLA in Mia website and you can see the work that we've been doing on that and how we've evolved to where we are at the moment. The exciting thing, that's the question right? So the exciting thing is I've been in the industry for a long time and there's just problem statements coming out all over the place. To address those things the way that we've been doing things historically is looking at an individual problem statement solving for us and then just creating more complexity. So the exciting thing now is where we have standards that we can start actually working to solve all of those things and that's the future that's going to respond to. Excellent, Georgina, how about you? Last but not least, ICMA has just very recently, well not so recently but over the last couple of years sort of been working hard to add the bond and repo transaction life cycles to the model. That business for those of you who know about it is very very fragmented and actually hasn't done a lot of whole scale transformation and to end on that trade life cycle. So there's gallons of opportunity. I think excitement and the words modelling and data models are sometimes quite difficult to marry out but we are genuinely really excited to be part of this initiative and indeed actually working together as three trade associations to simplify and standardise transactions that really are important and as we all know create massive cost and complexity that just isn't necessary. So yep, we're very very happy to be part of that. Perhaps I'm one of those geeks that gets super excited about model. No, I shouldn't actually say that. Your decision is big so I don't know those but... Excellent. I'll add a tagline into that because it's an important thing of what we're all doing. It's the market building something for the market which is something that hasn't happened before. There's normally a vendor or a firm doing something and at the same time that we're doing that it's called for by the regulators and their tagline from the European side anyway is what can we do to help so that shows that the regulators are really involved, invested in what we're doing as well. I think there's definitely the problem statement out there that we need to solve and I think this absolutely is the solution. Perhaps let's look a little bit into the future then. What do you hope for the CDM over the next couple of years and perhaps also touch on the impact that should have for the financial industry? Georgina, let's start with you. I think it's hugely why we're here actually. The associations have built with a lot of input from all of our vast membership between the three associations so the banks, the asset managers, the investors in our case, the issuers, et cetera, all the technology firms, some of the law firms and all the other participants in the market. We've built a model that we believe is a pretty good start to show how these transactions work. If we could all rewind the entire evolution of the industry and start again then maybe we'd have all done it together the same way and then our regulatory pain would have been a lot less. I think the exciting part now is getting it out into the community which is what this is all about. I'm getting people to actually start to use these models and properly embed them and as a result more brains makes it better, richer, more effective, more efficient. This is real testing to all of us techies. We're actually going to test it in the real world so that's the next step from our perspective and it's great news I think. Great and Alan perhaps you've had the longest so what's the next six years? You know what you're doing. I think the key statement is that why are we doing CDM and some of the use cases like DRR? The key proposition is we're doing it to maximise cost efficiencies through industry mutualisation. This is not theoretical. We demonstrated that in the last year with digital regulatory reporting DRR. We've seen and witnessed those cost efficiencies. This is a great opportunity with the other trade associations to extend the breadth and depth of CDM beyond just derivatives to new asset classes. Great and Adrian. I want to go a bit about those problem statements I mentioned earlier on. We've got regulations, we've got sustainability, we've got the high cost of operations which is to the point in the panel earlier that Colin made a point about why should they be contributing. There's a business case in there because the cost of all of this infrastructure at the moment is enormous. There's a lot of focus on it from firms and also what's the solution it's actually to come up with these standards. There are too many standards so there are lots of people creating their own standards at the moment and actually it needs to happen in a common place which is the trade associations and of course on Finos as well. There's two examples I want to give for the future that we can look at. A common practice in financial firms is that you have to do a transaction and you have to do lots of other transactions to support it to get to that point in the future where we can do all of these transactions and it can all be expressed in a single sort of standard and then that means you get this interoperability between all the platforms internally and externally. Internally within a firm they've got a big mess at the moment trying to connect all the different platforms together and that needs to be solved and externally I mean about regulators for instance or talking to your counterparts or interacting with exchanges. The other thing is that to get away from this paradigm we're in at the moment where there's a regulation we take SFTR which is a European one but you've got the 10C1 which is a similar sort of thing where the regulator says I want all this of all these fields and that actually isn't the right way to do it it should be the market saying what our transactions look like and then the regulator saying fine shopping list I'll take out of those things. The future is that we don't spend five years trying to figure out what the regulator wants we just say this is how it operates and they're satisfied. Yeah and I think the other one and Alan mentioned it a little bit before and I sort of talked about blockchain and DLT the other space is how do we start to really use the technology that's out there in the industry and just two weeks ago I think it was GS announced the launch of our GS DAP so the digital assets platform and we did our first bond insurance on there on the chain and the interest rate hedge for that actually uses the CDM as the model and so that's sort of the first implementation for us of the CDM out there on blockchain and DLT so definitely starting to see this adoption happen when you've worked on something for six years it's really exciting when it starts to actually come to fruition so that's really exciting. We've covered a little bit now about the CDM but we are at an open source conference so perhaps we should turn and talk a little bit about that so perhaps take us through why the trade associations have decided to actually open source the common domain model at this stage in its journey and Adrian let's start with you. So trade associations have a sort of more altruistic view I suppose in the way that the markets operate if we take example of what we do as trade associations we create apart from looking after legal agreements we also create best practices such as decorating procedures I think it's the other term that's used and that to be a market standard it needs to be out there for everyone to look at there's no point in it being ring vendors so it made complete sense to go through some process to distribute that more widely to create that standard and it's exactly what members were asking for we've had it time and again over the past decade people saying where's that conversation going to happen it has to happen in an open place so that we can all adopt it but they need to have the feedback into it as well so that people can be engaged with it and it's open for everyone to use and it creates a standard not just for our members Yeah great Georgina Yes so I mean these things are never developed for commercial gain I mean nothing that the trade associations ever do is on that basis they are not for profit organisations albeit not arguably not a charity but let's call it a charity for the financial services industry and I think actually we've touched on regulation it's quite important that we're now being seen as even more important between the industry so representing the whole industry in this case three industries or three parts of our financial services industry on their behalf so taking this to open source as I mentioned before is really getting it to live, getting it to fly there are three of us even though we're all independent of the actual market participants themselves but there are now three of us so we need to put it somewhere where it's independent of all three of us as well I think that's the reason we want it for open and free use and that's open source really isn't it? Yeah great, Alan? Yeah I think open source offers a neutral third party source of contributors beyond just the typical participants you might see I think that brings great value and it also increases transparency to the regulatory community globally and I think that's very important having that transparency and the neutrality of those contributors there's no commercial proposition we're trying to do it for good cause for good cause and good reasons so I think that's a core benefit Yeah I think it is that the adoption of a standard is the only way that actually we gain the benefit from it so for me and some of the reasons why I love working in the open source community is it allows us to get more participants and also to therefore accelerate the build of these things as we get more people to actually contribute to it and hopefully it makes all of you guys feel a bit more responsibility for what's going in there and so as it starts to get adopted you've got a little bit more of a confidence in what's on there so super exciting I'm sure there's lots of people out here and I know I've heard a couple of people talking about it earlier on perhaps we should just touch on how did you land on actually using fin-off to open sources Alan I don't know if you want to take that one So thank you three trade associations were involved in the selection process the rigorous formal RFP process with six candidates after an extensive process of scoring we decided I think unanimously in fact it was unanimously on fin-off I think some of the contributing factors were cost efficiency reputation and legacy especially with the history of fin-off and the Linux foundation and transparency it's a very transparent governance process which I think helps with communication with regulators Adrian anything to add? I just love the sound of it the non-profit organisation we're non-profit organisations yes we had to go through the RFP process because we had to have that transparency to our members because that's where we're funded from so there was great news that we ended up where we are using fin-off perfectly aligns with our values as well which is why and it's just a great opportunity Georgina anything to add on you? Just really touching on the fact that the associations don't naturally work together actively very often actually so this is quite a truly groundbreaking project because we all look after our individual businesses but actually the ability through an RFP to aid the process properly but also B come to a joint completely agreed well-governed decision is very very important otherwise we feel like somebody's made a decision without the other party having full input so I'm going to contradict You're going to contradict? Just a little bit so especially on regulations where there's no point we're very similar related in terms of the way our markets operate and where we especially on something again like regulations it makes sense for us to align so we have been aligning on certain regulations to make sure that our best practice is going to align Fair adjustment Adrian but it's give and take though sometimes you come up with better ideas and they get adopted into ours actually with a very large body of trade associations on some of the regulations that are going through at the moment there's like 10-15 of us get together globally and we agree what the standard should be just because it makes sense to do it like that not for any of the fairest reasons I think it's a big thank you if I can do it on behalf of the financial industry that you can't bring together to bring this into one place so I think that's great If you're interested in hearing more I know we've touched on little bits here but there's so much more going on today about the CDM you've heard a little bit about it I know there's a session that will look at the history of it so if you're interested in what happened over the last six years there's a session happening on that there's also going to be showcases of how it's being used in the industry you've heard from a couple of us but actually there are other people in the community that are doing it so please go and find that session as well perhaps a little shameless plug from me so my role within Finos is also as co-chair of the financial object SIG and over the last couple of years we have been contributing to the CDM through that SIG but we have great ambitions of what more we can do now that sort of this launch is happening and so if you're interested in anything we've spoken about please do come and find me or my co-chair Ian is somewhere around in the room the back over there please do come and find us we would love to hear how you'd like to get involved or how you'd want to see this sort of move forward over the coming years so please do come and get in touch perhaps to finish us off because we've spoken about quite a few things can you each give three words that you want people to take away from this session today and as they go and sort of enjoy the day to Regina it's been corrected by Adrian in all seriousness it's all about collaboration us and the whole of the Finos community foundational and then in bed and deployed that's four but they're the same so in bed and deployed excellent Adrian so I'm going to be cheeky and I'm going to try twice my first attempt is adopt our CDM that's an obvious one that's obviously to financial firms and regulators as well and then we're going to use some sort of standards sort of terms like standards future and efficiency great and Alan to finish us off I think I've touched upon it mutualisation of effort which also ultimately means cost several words there that's not quite one but hopefully that suffices industry standardisation I think is a key part of the of the remit of trade association and machine executable interpretation that was loads of words I've cheated that's why I put them at the end excellent well thank you so much to our esteemed panel thank you for being here and hopefully you can all see and we'll get involved throughout the day thank you