ISDA adds AI tracer agent to reporting tool, flags 43 removable CFTC-SEC fields
ISDA chief executive Scott O'Malia sets out how the association is applying AI to its Digital Regulatory Reporting solution and where it wants regulators to cut complexity. For anyone running derivatives trade reporting across CFTC, SEC, FCA and ESMA regimes, this is the direction of travel on both tooling and rule simplification.
- ISDA has launched the AI-powered DRR Tracer Agent, giving users an auditable record mapping DRR interpretations back to regulatory reporting requirements.
- Four more AI agents are in development: a Translator Agent, a Coder Agent, a Knowledge Agent and a Mapper Agent.
- The DRR, launched in 2022 on the Common Domain Model, now covers eight further regimes and is committed to 14 reporting rule sets in nine jurisdictions.
- In its CFTC-SEC consultation response, ISDA scrutinised 177 data fields and identified 43 it says provide no regulatory value or duplicate existing data.
- ISDA says industry working groups will still review and agree DRR interpretations, with AI speeding the translation of those judgments into code.