Statement Summary
The U.S. Securities and Exchange Commission (SEC) has introduced joint data standards under the Financial Data Transparency Act of 2022. These standards, endorsed by eight federal agencies, aim to enhance interoperability in financial regulatory data, enabling consistent data collection by establishing common identifiers for entities, locations, dates, products, and currencies.
SEC Chairman Paul S. Atkins highlighted that this initiative will reduce burdens on financial institutions and increase data accessibility for investors. SEC Commissioner Mark T. Uyeda emphasized the importance of collaboration among federal regulators and noted that further rulemaking will improve data accessibility.
The framework also includes a principles-based standard for data transmission and formats to facilitate high-quality, machine-readable submissions by financial institutions.
Original Statement
The U.S. Securities and Exchange Commission established joint data standards under the Financial Data Transparency Act of 2022. The final rule establishes technical standards for data submitted to certain financial regulatory agencies. Eight additional agencies have established or are expected to act on establishing the joint standards: the Board of Governors of the Federal Reserve System, the Commodity Futures Trading Commission, the Consumer Financial Protection Bureau, the Department of the Treasury, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the National Credit Union Administration, and the Office of the Comptroller of the Currency.
The joint standards are designed to promote interoperability of financial regulatory data across the agencies by establishing common identifiers for entities, geographic locations, dates, and certain products and currencies.
“The establishment of joint data standards across federal financial regulators will help ensure consistent data collection that will both ease burdens for financial institutions and make data more accessible to investors,” said SEC Chairman Paul S. Atkins.
“This action is a first step towards implementing the Financial Data Transparency Act across federal financial regulatory agencies,” said SEC Commissioner Mark T. Uyeda. “I am grateful to our colleagues across the federal government for their cooperation on this effort, which will be followed by separate rulemaking for agency-specific standards that will further improve the accessibility of financial data.”
In addition, the standards include a principles-based joint standard with respect to data transmission and schema and taxonomy formats, which would allow financial institutions to submit high-quality, machine-readable data to the agencies.
