Cutting through the hype surrounding the FDTA rulemaking process
A bill requiring US regulators and institutions to adopt a machine-readable data framework for reporting purposes applies to entity identifiers, but not security identifiers, in a crucial difference, writes Scott Preiss, SVP and global head of Cusip Global Services.
Depending on who you speak with, it may seem like the Financial Data Transparency Act (FDTA) is the biggest thing to happen to the world of financial data reporting since the advent of the spreadsheet. While it is an important piece of legislation designed to modernize the collection and dissemination of financial data by and between federal financial regulators, the FDTA has also fallen victim to a great deal of hype and misinformation about its purpose.
The law, enacted in December of 2022, is
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