Here is our pick of the 3 most important XBRL news stories from the last week.
1 Time to digitize trade reporting
In September 2009, it took just nine words – OTC derivative contracts should be reported to trade repositories – for the Group of 20 (G-20) to unleash one of the most ambitious and complex initiatives in the history of derivatives markets. Despite the obvious rationale for improving transparency to give regulators better insight into market activity and emerging risks, trade reporting has proven exceptionally challenging.
I like the “technology first” approach taken in this ISDA blog post. It constitutes a refreshing change from the otherwise wide spread (ok, who am I kidding – the Swiss) regulatory cop out attitude of “technology neutrality”. It’s just trying to avoid answering hard questions. In doing so, detail pandemonium swiftly ensues …
2 GLEIF unveils issuance and infrastructure models for verifiable LEI system
On 11 February 2021, the Global Legal Entity Identifier Foundation (GLEIF) published issuance and technical infrastructure models for its recently announced verifiable LEI (vLEI) system. A vLEI is a secure digital attestation of a conventional LEI. When fully developed, the vLEI will enable instant and automated identity verification between counterparties operating across all industry sectors, globally.
Again, this piece is answering another hard question, as mentioned above – and in doing so generates real day to day value in use. On a meta-level, it seems to do for LEI what the proposed Swiss eID avoids doing by delegating to private issuers, with an overly complicated governance framework to compensate …
3 Mohini Singh on standards to manage investment risk
Head over to the Taggings section of our website for a guest post from Mohini Singh, ACA, Director of Financial Reporting Policy at CFA Institute and Treasurer of the XBRL International Board of Directors. She reflects on a panel discussion on ‘Standards to Manage Investment Risk,’ where she joined Mike Willis of the US Securities and Exchange Commission (SEC) and the Council of Institutional Investors’ Jeff Mahoney in a conversation moderated by Jeff Naumann of Deloitte – a special treat for anyone who missed the XBRL US Investor Forum 2020.
If anything, the pandemic has demonstrated the usefulness (and indispensability, frankly) of timely, granular information, without which we are navigating in the dark. Which is still where we are in many places, twelve months later. Here’s to hope that this demonstration will fall on fertile ground when it comes to updating reporting frameworks all over the place!
Christian Dreyer CFA is well known in Swiss Fintech circles as an expert in XBRL and financial reporting for investors.
We have a self-imposed constraint of 3 news stories each week because we serve busy senior leaders in Fintech who need just enough information to get on with their job.
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