However, because that involves reporting to many TRs in multiple jurisdictions, the FSB is consulting on how best to aggregate that data so it can be used effectively by regulatory authorities. The FSB, in consultation with the Committee on Payment and Settlement Systems and the International Organization of Securities Commissions (IOSCO), will then decide whether to develop a global aggregation system.
“The aggregation options are being considered on the basis that they would complement, rather than replace, the existing operations of TRs and authorities' existing direct access to TR data,” the FSB said in a statement.
It is asking for views on three different models:
- A physically centralised model, in which a central database collects and stores the required transaction, position and collateral data from TRs;
- A logically centralised model where data collection and storage is “federated” (ie, physically decentralised) but instead would rely on a central logical catalogue or index to identify the location of data resident in the TRs;
- The collection and aggregation by individual authorities themselves of raw data from the TRs. This is the current position. Although it would be possible for regulators to expand their cross-border access to data through international agreements, truly global and comprehensive data aggregation does not seem possible with this model.
The consultation paper also asks for views as to whether it has properly covered the legal, data and technology issues and whether there is any other model that should be considered.
Views are sought by 28 February 2014. The consultation paper can be downloaded by clicking here.