The final rule creates common identifiers for entities, locations, dates, products and currencies, while eight other U.S. financial agencies have established or are expected to establish the shared standards.
The U.S. Securities and Exchange Commission (U.S. markets regulator) established joint data standards under the Financial Data Transparency Act of 2022 through a final rule that sets technical requirements for data submitted to certain financial regulators. The framework is meant to make regulatory information interoperable through common identifiers for entities, geographic locations, dates, and certain products and currencies, and it adds a principles-based standard for data transmission and schema and taxonomy formats so financial institutions can submit high-quality, machine-readable data (structured digital format). The SEC said eight additional federal financial agencies have established or are expected to act on the standards, while SEC Chairman Paul S. Atkins said the move should ease burdens on institutions and improve data access for investors, and SEC Commissioner Mark T. Uyeda said separate agency-specific rulemaking will follow.