INNODATA ISOGEN, INC. (NASDAQ: INOD) today announced that the Commodity Futures Trading Commission (CFTC) has selected Michael Will, President and Chief Product Officer of Innodata’s docGenix division, as a member of its new Technology Advisory Subcommittee on Data Standardization.
The CFTC has stated that the purpose of the Subcommittee is "to develop recommendations regarding a standardized reference data depository representing the universe of legal and financial terms utilized in describing, defining, and valuing the various derivatives and other financial instruments which are presently and in the future may be traded on and off of regulated exchanges. The creation of standardized reference points and data terms is anticipated to aid in the development and use of universal entity, product, and/or instrument identifiers and provide greater consistency in the collection, reporting, and management of individual transactions, underlying legal documents (including master agreements and credit support agreements), and risk exposures." (Federal Register notice dated May 2, 2011, seeking nominations to the Subcommittee) 1.
Of 52 nominations received by the CFTC in response to the Federal Register notice, the CFTC announced on June 23 that it selected 19 members from companies including (in addition to Innodata’s docGenix) Barclays Capital, Blackrock, Bloomberg, Citigroup, CME Group (the derivatives exchange), Depository Trust & Clearing Corporation (DTCC), Financial Industry Regulatory Authority (FINRA), Goldman Sachs, Google, Intercontinental Exchange (ICE), International Swaps and Derivatives Association (ISDA), MarkitSERV, Society for Worldwide Interbank Financial Telecommunication (SWIFT) and Thomson Reuters, as well as federal agency observers from the U.S. Securities and Exchange Commission (SEC), the U.S. Treasury/Office of Financial Research (OFR), and the Federal Energy Regulatory Commission (FERC).
In its June 23 announcement 2,Commissioner Scott O’Malia, the chairman of the CFTC’s Technology Advisory Committee, stated that he “was pleased by the large number of extremely well-qualified nominees for participation in the work of this important subcommittee.” With regard to the Subcommittee’s charter, Commissioner O’Malia also stated, “Data is the foundation of our market oversight activities and it is essential for the Commission and the market to agree on well-accepted standards for describing complex financial products.”The Subcommittee will be chaired by the CFTC Chief Economist Andrei Kirilenko and will conduct at least three sessions. The sessions are planned for the summer, fall and winter of 2011 and will be open to the public. The Subcommittee will consist of the following four working groups: product and entity identification; semantic representation of financial instruments; machine-readable legal documents, and storage and retrieval of financial data. The Subcommittee will present a report with its recommendations to the Technology Advisory Committee, which will consider the report and make recommendations to the CFTC as to what further actions warrant consideration.