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DRR development design principles

The 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. model is built as an extension of 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.). 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. to represent trades and lifecycle events as a required input for the 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. process. In practice, this means that 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. adheres to the same design principles as 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., while adapting them to meet the specific requirements of regulatory reporting. In this context, these principles can be summarised into four key design principles:

  • Functional
  • Composable and reusable
  • Auditable
  • Test-driven

Functional​

The 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. model contains a complete set of logical instructions to take a 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. input and produce a regulator-ready output. There is no hidden or behind-the-scene logic that an implementor would need, in addition to the one expressed in the model, to build that reporting system. If that implementation uses the model’s auto-generated executable code, no further code is required to express the reporting logic - although some coding is necessary to integrate what the 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. model 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..

This feature is key to ensuring the consistency and comparability of reported data across the market, i.e. the same inputs would produce the same reporting output regardless of the particularities of each firm’s implementation.

Composable and reusable​

The 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. model is built on defining reusable components, which helps prevent repeating logic and duplication of effort.

The 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. function TradeForEvent demonstrates this approach in practice. As reporting logic starts from a transaction event, many reportable fields require access to the associated details of a trade. Rather than embedding trade retrieval logic inside every reporting rule, 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. defines this logic once in TradeForEvent, and resues it where required.

reporting rule NotionalQuantityLeg1 from TransactionReportInstruction: <"Notional Quantity Leg 1">
    filter IsAllowableActionForCFTC
    then if IsEquity(ProductForTrade(TradeForEvent)) = False
        then common.quantity.NotionalQuantityLeg1

Auditable​

Every reporting rule defined in the 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. model can be directly linked back to the regulatory text that it comes from. The model allows for precise references to documents and provisionsprovision Sits inside the `regulatoryReference` block and captures the verbatim requirement from the regulation or standard. It provides the legal basis for the rule’s functional logic. contained within those documements. This is implemented in 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. using the document reference feature of the Rune DSLRune DSL The domain-specific language built on Java that DRR uses for its logic..

reporting rule Cleared from TransactionReportInstructionBase: <"Cleared">
    [regulatoryReference CPMI_IOSCO cdeV3.CDE section "2" field "14"
        provision "Indicator of whether the transaction has been cleared, or is intended to be cleared, by a central counterparty."]

Test-driven​

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 a test-driven approach to develop the reporting model. This means that the model is being systematically tested using transaction data inputs, and the reported outputs are validated against an expected result.

The transaction data inputs are synthetic data - i.e. not actual production data but data that are representative of real-life transaction scenarios and that can be used to test the validity of the reporting logic. They are typically provided by firms participating in 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., after those firms apply suitable anonymisation and data scrambling to preserve privacy. A reporting rule is considered fully developed only once its logic has been verified against relevant test data.

Test data is organised around themes and grouped into Test Packs in the 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. model repository - for instance, by asset class. Each test pack contains both the transaction data inputs and their expected output. Test packs are an integral part of the model and are readily available to allow firms to benchmark their own implementations.

This approach supports the ongoing governance of the 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. model. Any mismatch in the pre-loaded test packs would generate expectation differences which need to either be resolved, or explained if the change is justified.