This month, the Association of National Numbering Agencies (ANNA) formed a new Benchmarks Taskforce to provide clarity and guidance around the development of International Securities Identification Numbers (ISINs) for indices and reference rates.
The Association, which brings together the organizations responsible for assigning identifiers such as ISIN, FISN and CFI, has made the move in response to the EU Benchmarks Regulation (BMR). Since the implementation of BMR in January 2018, benchmark administrators have been required to provide an ISIN where available to identify their indices. ANNA’s role is to help ensure that the resulting ISINs meet the needs of market participants.
This new development is welcome as it will provide benchmark users with much needed support around ISIN allocation and will help ensure the codes are useful to the wider market. The challenge for benchmark users, however, will lie in maintaining this emerging reference data
and ensuring their financial instruments and contracts are mapped to the new identifiers. Poor or inaccurate reference data will lead only to failed trades and regulatory non-compliance.
The reference data burdens being placed on firms by BMR comes at a time when they are already under pressure to adapt to the requirements of other
far-reaching regulations including MAR, EMIR and MiFID II. The challenge facing firms is to gain access to a trusted source of reference data without accruing too much cost or disrupting business as usual.
This is where managed data services and RegTech offerings are proving their worth, including those offered by RIMES. On the reference data side of things, firms can access cloud-based services that provide instant access to the full universe of reference data they need to meet their business requirements. The approach ensures that all reference data is quality-assured and delivered at pace to the required business systems. It also frees data management resources to be used elsewhere in the organization.
Meanwhile, when it comes to compliance new RegTech services can help firms stay on top of fast changing market events. This will prove critical as key elements of the post BMR-benchmarks landscape have yet to come fully into focus – including the use of ISINs. RegTech services ensure that all market changes are reflected in firms’ data feeds so that firms remain on the right side of the regulators.
Making data fit-for-purpose and compliant is an essential task, but one that has traditionally proved cumbersome and costly. Managed data and compliance services are set to change that once and for all.
Contact us to receive more information about RegData Reference Data Service, the new solution which provides consolidated files of ISIN, CFI and LEI codes from a single, trusted source: https://www.rimes.com/contact-us/
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