Common Domain Model
Jane Duscherer, Fixed Income Product Specialist here at AxeTrading has taken a look at the arguments for a Common Domain Model in Fixed Income trading.
Electronic trading of fixed income has grown rapidly in recent years, and we see this trend continuing globally, as developed markets
mature and emerging markets electronify. As a result, ever more data related trade events and processes are becoming available. This points to a compelling case for standardising bond market data representation to reconcile trades, to tackle data quality issues related to market transparency, and to foster greater automation through the use of blockchain and artificial intelligence/machine learning. The Common Domain Model (CDM) proposes to lay the foundation for this, and ICMA, in collaboration with ISDA and ISLA, and in partnership with REGnosys, have completed the first phase in its initiative to extend the CDM to repo and bonds.
The above diagram illustrates a few of the many different parts of the workflow where using a CDM could help to reduce inconsistent data and help make electronic trading, clearing, settlement, amongst other areas, more efficient while reducing costs for the end-user.
To see the full article go to ICMA Quarterly Report - January 2022.