SEC introduces XBRL for central matching service provider reports
This week the US Securities and Exchange Commission (SEC) finalised the new rule, Shortening the Securities Transaction Settlement Cycle, which will require Inline XBRL tagging for annual reports filed by central matching service providers (CMSP). The aim of the rule is to reduce risks in clearance and settlement by increasing speed, transparency, and efficiency of the standard settlement cycle.
CMSPs will be required to submit an Inline XBRL-tagged annual report describing their progress facilitating straight through processing in the past year. The iXBRL report will be made publicly available, including block tags and detail tags. The resulting machine-readable data on policies and procedures will increase transparency, accessibility, and insight into CMSP actions for the SEC, investors, and the public.
The rule takes effect 60 days after publication (our estimation is 15 April 2023), with the final date for compliance 28 May 2024.