ISDA and Digital Asset Introduce Tool to Drive Adoption of ISDA CDM
Digital Asset, a provider of distributed ledger technology (DLT) solutions, announced that it is working with ISDA to develop an open-source reference code library that will help derivatives market participants adopt the ISDA Common Domain Model (CDM). This new tool will assist developers in implementing the ISDA CDM in solutions for trading and managing derivatives via DAML, which is the smart contract language created by Digital Asset. The ISDA CDM promotes transparency and alignment between regulators and market participants, thus ensuring that regulatory goals can be met more efficiently.
The ISDA CDM is the first industry solution to tackle the lack of standard conventions in how derivatives trade events and processes are represented. Developed in response to regulatory changes, high costs associated with current manual processes, and a demand for greater automation across the industry, the ISDA CDM establishes a common blueprint for events that occur throughout the derivatives lifecycle, paving the way for greater automation. The new reference code library will support implementation of the ISDA CDM by simplifying and standardizing the process of generating lifecycle events defined in the ISDA CDM. This may otherwise involve a number of complex steps. The reference code library of Digital Asset complements the ISDA CDM by allowing developers to unambiguously construct lifecycle events with a machine-executable specification. Furthermore, this reference code library specification allows the ISDA CDM to fully integrate with DAML.
DAML, the smart contract language of Digital Asset, was open sourced on April 04. It is used by software developers to describe multi-party workflows and to automate transactions between participants. DAML enables derivatives contracts to be described in terms of the rights, obligations, and market conditions that govern these contracts. To help drive adoption of the ISDA CDM, Digital Asset has also made the reference code library public under an open-source license. Consistent with the ISDA principles to encourage the widest possible deployment of the ISDA CDM, the specification will be compiled to executable libraries in other languages.
Related Links
Keywords: International, Banking, Securities, Fintech, Distributed Ledger Technology, Blockchain, DAML, Common Domain Model, ISDA
Previous Article
EBA Report Examines Progress in Addressing Nonperforming Loans in EUNext Article
IFSB Publishes Working Papers on Islamic FinanceRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
