CFTC Establishes Joint Data Standards as Required Under the Financial Data Transparency Act of 2022

WASHINGTON -The Commodity Futures Trading Commission established joint data standards under the Financial Data Transparency Act of 2022. The final rule establishes technical standards for data submitted to certain financial regulatory agencies. Eight additional agencies have established or are expected to act on establishing the joint standards: the Board of Governors of the Federal Reserve System, the Securities and Exchange Commission, the Consumer Financial Protection Bureau, the Department of the Treasury, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the National Credit Union Administration, and the Office of the Comptroller of the Currency.

The joint standards are designed to promote interoperability of financial regulatory data across the agencies by establishing common identifiers for entities, geographic locations, dates, and certain products and currencies.

"As market participants operate in an increasingly convergent financial ecosystem, they must navigate the regulatory requirements of multiple federal agencies that often require them to report similar or identical data using different data standards," Chairman Selig said. "These inconsistencies increase costs on firms without a commensurate benefit to regulators' use of the collected data. This final rule is an important step towards reducing these unnecessary burdens."

In addition, the standards include a principles-based joint standard with respect to data transmission and schema and taxonomy formats, which would allow financial institutions to submit high-quality, machine-readable data to the agencies.