Common Domain Model (CDM) for repo and bonds
2 July 2021 ICMA is cooperating with ISDA, ISLA and REGnosys to extend the Common Domain Model (CDM) to include repo and, by extension, outright bond transactions.
The CDM is a standardised, machine-readable and machine-executable blueprint for how financial products are traded and managed across the transaction lifecycle. ICMA is developing the CDM to provide an unambiguous, digital representation of repo and bond transactions in the form of code. It builds on legal definitions from the Global Master Repurchase Agreement (GMRA) and the ERCC Guide to Best Practice in the European Repo Market.
The CDM for repo and bonds is designed for use by repo market participants transacting in various repo structures and currencies, using different execution venues, protocols, and vendor solutions and by market and also for market infrastructures and vendor firms in repo and collateral markets.
Member firms have actively contributed to this cross-industry initiative by providing guidance and test data through regular ICMA CDM Steering Committee (SteerCo) meetings. The initial focus of the group has been to model a standard fixed-term repo, with a single ISIN as collateral, which is the most commonly transacted repo structure. Lifecycle events in the initial phase comprise trade execution, clearing and settlement. Modelling work has also included the mapping and ingestion of FIX 4.4 messages to CDM. Additionally, a bond transaction has been modelled so that the fundamental data points required for settlement can be represented in the CDM.
Implementation of the CDM will deliver industry wide efficiency gains for many internal processes eg trade execution and confirmation, risk management, regulatory reporting, reconciliations and settlement; improve interoperability between market infrastructures, and lay the foundation for innovation using technologies such as distributed ledger and cloud services.
ICMA fact sheets – CDM for repo and bonds at a glance
ICMA virtual event
Common Domain Model (CDM) for repo and bonds, 21 July
The initial phase of ICMA’s project to model and develop the CDM for repo and bonds will be completed this July and presented in a virtual event on 21 July. This virtual event, open to all interested market participants, will include:
- An introduction to the ICMA CDM project
- Demonstration of the CDM in action
- Discussion by panel of industry participants from the project Steering Committee of the implementation process and its benefits.
ICMA media resources
|What is the Common Domain Model?
In this webinar presentation, ICMA’s Gabriel Callsen gives an update on the the CDM project for repo and bonds, the scope of the project, milestones and deliverables and the role of the Steering Committee of members.
|The Common Domain Model – fundamentals & genesis
In this podcast, Dr Lee Braine, Director of Research and Engineering in the Chief Technology Office, Barclays talks to ICMA Chief Executive, Martin Scheck about the Common Domain Model, how it digitises life cycle events to address the problems of inconsistent processes and data and its application to derivatives, bonds and repo. They also discuss the challenges for its adoption in capital markets.
Further information on the CDM for repo and bonds can be found on ICMA's website.