CDM for repo and bonds

ICMA is cooperating with ISDA to extend the development of the Common Domain Model (CDM) to include repo and, by extension, outright bond transactions: a single, common digital representation of securities trade events and lifecycles intended to enhance standardization and facilitate interoperability across firms and platforms. The development of the CDM for all financial markets and securities will be critical in creating cross-industry efficiencies while easing the development and adaptation of new technologies.

What is CDM?

The ISDA CDM has been designed as an industry solution to tackle the lack of standard conventions in how derivatives trade events and processes are represented. Developed in response to regulatory changes, high costs associated with current manual processes, and a demand for greater automation across the industry, the ISDA CDM establishes a common blueprint for events that occur throughout the derivatives lifecycle, paving the way for greater automation.

Essentially the CDM creates common building blocks in machine readable format that can be used by all businesses and processes within a firm, or across the entire industry. The benefit is to recreate and represent any individual securities transaction or lifecycle event in an entirely consistent and replicable way, deriving exactly the same cashflow outputs. This immediately facilitates the potential for interoperability not only between firms’ various internal systems (quoting, transaction execution, reconciliations, settlement, risk management, regulatory reporting, data analysis), but also between different firms and market infrastructures (trading venues, OMS/EMS, CSDs, CCPs, Trade Repositories).

CDM and bonds & repo

In cooperation with other industry bodies, ISDA is looking to expand the CDM to other markets and asset classes. ICMA has embraced the opportunity to partner with ISDA in developing the CDM to encompass bond and repo markets.  As with derivatives, the expected benefits to the bond and repo markets will be:
  • Greater internal efficiencies for firms’ various processes and IT applications: e.g. trade execution, risk management, regulatory reporting, trade confirmation, reconciliations and settlement.
  • Enhanced interoperability between market infrastructures, including trading venues, order/execution management systems, CSDs, CCPs, and trade repositories.
  • Consistency of regulatory transaction and trade reporting (MiFIR / SFTR).
  • A common foundation for developing new technologies such as distributed ledger and cloud services.
How to be involved

ICMA has created a working group of sell-sides, buy-sides, trading venues and technology providers to help support the development of the CDM for bond and repo markets. The working group includes front office, middle/back office, IT and legal experts. In cooperation with ISDA, firms are helping to provide sample electronic records of trades and/or database schemas both to enhance and test the CDM design and outputs.

If member firms would like to be engaged in this important cross-industry initiative, or would simply like to learn more, they are encouraged to contact the ICMA team.

News and updates

30 March 2021
Presentation on the CDM for repo and bonds by Gabriel Callsen at the ERCC AGM
View the webinar  |  Download the presentation

7 October 2020
Presentation on the CDM for repo and bonds by Gabriel Callsen at the ERCC AGM

8 April 2020
The ERCC launched webinars to bring members and the wider market up-to-date on key topics that have impacted the repo market. The webinars include  a discussion on ICMA’s ongoing collaboration with ISDA to extend the Common Domain Model (CDM) to SFTs, building a standardised digital representation of repos.
View the webinar  |  Download the presentation

6 April 2020
Summary of CDM Repo Workshops by Gabriel Callsen, published in the ICMA Quarterly Report Q2-2020.

16 March 2020
3rd ICMA/ISDA CDM Repo Workshop. Modelling and running a live demo of fundamental features of a repo transaction ie the execution comprising transfer of collateral and cash of both legs in the CDM. See supporting materials.

14 February 2020
2nd ICMA/ISDA CDM Repo Workshop. Advanced modelling  and live implementation of open repo and lifecycle components in the CDM. See supporting materials.

27 January 2020
ICMA/ISDA CDM Repo Workshop. The workshop focused on modelling open repos, and, as an initial use case for corporate actions, collateral coupon payments. The aim was to demonstrate the benefits of a consistent data model in machine-readable format, using a hands-on format which showed  a real-time implementation. The workshop is the first of a series. See presentation of the first part of the workshop.

16-17 October 2019
ICMA partnered with ISDA, Regnosys and others to support the Barclays DerivHack 2019. The objective was to build on the successful ‘CDM hackathon’ from 2018 to extend the simulation to post-trade processing of securities. There were seven use cases that aimed to model the typical steps of a front-to-back trade flow covering trade execution, allocation, affirmation, confirmation, settlement, position reports, and collateral events. See report published by EY.

10 October 2019
Common Domain Model: the path to efficiency By Ian Sloyan (from the ICMA Quarterly Report Fourth Quarter 2019).

CDM links and resources:

ISDA & ICMA: CDM for Repo
What is the ISDA CDM?
The Field Effect: CDM FAQ
Barclays White Paper on Industry Adoption Scenarios for Authoritative Data Stores using the ISDA Common Domain Model (14072020)


Andy Hill
Senior Director, Market Practice and Regulatory Policy; secretary to the Secondary Market Practices Committee and also responsible for overseeing repo policy.
Direct line: +44 20 7213 0335

Alexander Westphal
Director, Market Practice and Regulatory Policy, secretary to the ICMA European Repo and Collateral Council and Committee (ERCC) and ERCC Operations Group.
Direct line: +44 20 7213 0333

Gabriel Callsen
Director, Market Practice and Regulatory Policy
Direct line: +44 20 7213 0334

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