XBRL US supports standards for Swaps Reporting
A recent XBRL US comment letter expresses support for the Commodity Futures Trading Commission (CFTC) proposal to introduce reporting standards and expand the use of the Legal Entity Identifier (LEI) – but urges the CFTC to require the use of a single data standard.
The CFTC has proposed changes to the Swap Data Recordkeeping and Reporting Requirements, designed to streamline the requirements for reporting new swaps, harmonise data elements with international guidance, and reduce the reporting burden.
The proposal includes requiring counterparties to obtain and be identified with a LEI, which would provide critical clarity around organisational provenance.
The proposal also includes introducing data standards, however, XBRL US caution that the CFTC should only use one financial data standard in order to ensure that data is consistent, standardised and that the process for preparers and users is streamlined and simplified. Requiring data to be reported in XBRL format would ensure that it is machine-readable – and therefore easily analysed digitally.
Read more and access the comment letter here.