The Association of National Numbering Agencies (ANNA) has announced that under a consulting contract with technology firm Etrading Software, the core functionality of the allocation engine for the International Securities Identification Number (ISIN) for OTC derivatives has been implemented.
Alan Dean, ANNA Board member, said: “Thanks to the skills and commitment of Etrading Software, we are delighted that the current state of development is in advance of the timeline, so the derivatives industry has the necessary information to address 2017 budgets for implementation and testing by users before MiFID 2 goes into effect in early 2018.”
The automated allocation system has several distinct features that distinguishes it from existing numbering engines in the marketplace for financial instrument identification:
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- State-of-the-art, open-source architecture that allows rapid on-boarding of new derivative products, a critical feature in the expectation of emerging new variations of derivatives
- A high-performance, real-time engine capable of meeting the timing requirements of derivatives markets for ISIN creation as well as the distribution of high-volume real-time data on a global basis
- Scalable, resilient capability to maintain the golden source of derivatives reference data for regulatory reporting and business operations across the full trading lifecycle in Europe and across the globe
- Ability to integrate easily with derivative market participants’ own trading and technology platforms through FIX open standards for both ISIN registration and real-time consumption of ISIN reference data by users
- Ability to support multiple product formats, starting with FpML and extending to other open standards as required
- Ability to create and support multi-tier instrument hierarchies to meet multiple business and regulatory requirements using a single, unified metadata-driven model
ANNA is set to make the engine and connectivity specifications available to the marketplace by Q1 2017.
The ISIN for OTC derivatives is currently in the final stages of development to meet the reporting requirements of the European Securities and Markets Authority (ESMA).
Due to the variety and complexity of derivatives contracts, this incorporates more descriptive data than ISINs for other instrument types although the core structure and allocation rules for most derivative types have been completed.
Final work on remaining derivatives types is underway by the study group and supporting groups of industry experts.