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DRR and the CDM

DRR and the CDM​

The Common Domain Model (CDMCDM Common Domain Model. A standardised, machine-readable and machine-executable blueprint for how financial products are traded and managed across the transaction lifecycle. It is represented as a domain model and distributed in open source.) is the foundation of DRRDRR Digital Regulatory Reporting. An industry‑developed, machine‑executable interpretation of regulatory rules that produces consistent, transparent and fully traceable reporting outputs from standardised CDM data.. It providesIDE Integrated Development Environment. A software application that brings together all the essential tools a developer needs to write, test and debug code in one unified workspace. a shared, unambiguous way to describe financial products, events and processes so that every firm, vendor and regulator can interpret data and rules in the same way. You can read the full documentation for the CDM but here are a few highlights.

What is the CDM​

The CDMCDM Common Domain Model. A standardised, machine-readable and machine-executable blueprint for how financial products are traded and managed across the transaction lifecycle. It is represented as a domain model and distributed in open source. is a standardised data model for representing:

  • Financial products
  • Trades and trade states
  • Lifecycle events
  • Processes and workflows
  • Legal agreements

The CDMCDM Common Domain Model. A standardised, machine-readable and machine-executable blueprint for how financial products are traded and managed across the transaction lifecycle. It is represented as a domain model and distributed in open source. defines these concepts in a machine-readable and machine-executable format. Instead of each firm codifying the data for regulatory rules differently, the CDMCDM Common Domain Model. A standardised, machine-readable and machine-executable blueprint for how financial products are traded and managed across the transaction lifecycle. It is represented as a domain model and distributed in open source. ensures that everyone uses the same underlying structures and definitions.

How DRR uses the CDM​

DRRDRR Digital Regulatory Reporting. An industry‑developed, machine‑executable interpretation of regulatory rules that produces consistent, transparent and fully traceable reporting outputs from standardised CDM data. uses the CDMCDM Common Domain Model. A standardised, machine-readable and machine-executable blueprint for how financial products are traded and managed across the transaction lifecycle. It is represented as a domain model and distributed in open source. as its single source of truth for:

  • How trades are represented.
  • How lifecycle events are applied.
  • How derived fields are calculated.
  • How reporting logic is executed.

This gives DRRDRR Digital Regulatory Reporting. An industry‑developed, machine‑executable interpretation of regulatory rules that produces consistent, transparent and fully traceable reporting outputs from standardised CDM data. three essential qualities:

  • Consistency: The same input produces the same output across firms.
  • Transparency: Every field and rule is explicitly defined.
  • Interoperability: CDMCDM Common Domain Model. A standardised, machine-readable and machine-executable blueprint for how financial products are traded and managed across the transaction lifecycle. It is represented as a domain model and distributed in open source. based data can flow across systems without translation.

Without the CDMCDM Common Domain Model. A standardised, machine-readable and machine-executable blueprint for how financial products are traded and managed across the transaction lifecycle. It is represented as a domain model and distributed in open source., DRRDRR Digital Regulatory Reporting. An industry‑developed, machine‑executable interpretation of regulatory rules that produces consistent, transparent and fully traceable reporting outputs from standardised CDM data. would be just another set of bespoke rules. With the CDMCDM Common Domain Model. A standardised, machine-readable and machine-executable blueprint for how financial products are traded and managed across the transaction lifecycle. It is represented as a domain model and distributed in open source., DRRDRR Digital Regulatory Reporting. An industry‑developed, machine‑executable interpretation of regulatory rules that produces consistent, transparent and fully traceable reporting outputs from standardised CDM data. becomes a shared industry standard.

Core components of the CDM​

The CDMCDM Common Domain Model. A standardised, machine-readable and machine-executable blueprint for how financial products are traded and managed across the transaction lifecycle. It is represented as a domain model and distributed in open source. is organised into several key building blocks:

1. Product​

Defines the economic terms of a trade, including payouts, notionals, prices and product identifiers.

2. Trade and TradeState​

Represents the trade itself and its current state at any point in time.

3. Event​

Describes lifecycle events such as new trades, amendments, terminations, compressions and allocations. Events are applied to TradeStates to produce updated states.

4. Party and roles​

Identifies the parties involved in a transaction and their roles (e.g. counterparty, reporting party).

5. Processes​

Standardised workflows that describe how events are applied and how states evolve.