ISDA recommended that global regulators adopt the Common Risk Interchange Format ("CRIF") and Common Domain Model ("CDM") to allow for the standardization and automation of financial reporting. CRIF is a uniform template for holding and reporting risk data.
In a white paper, ISDA argued that, as central clearing, margin, trade reporting and revised capital requirements increase, so does the need for greater consistency in reporting.
ISDA stated that the adoption by regulators of the CRIF standards and the CDM would be advantageous because they:
- use existing criteria with which market participants are familiar;
- create a robust and thorough framework for representing risk data that can be directly applied to standardized capital models and the ISDA Standard Initial Margin Model; and
- allow a granular analysis of the factors driving capital and margin calculations and allow analysis of their relative significance to asset-class and risk-factor levels.
Primary Sources
- ISDA Press Release: The Future of Risk, Capital and Margin Reporting
- ISDA White Paper: The Future of Risk, Capital and Margin Reporting
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