.jpg)
The International Securities Lending Association (ISLA) has laid out a roadmap for its digital agenda in a white paper focusing on digital data standards created by the clause library and taxonomy project.
The trade body says that the success of the securities finance industry’s digital transformation must be underpinned by a focus on documentation.
ISLA has therefore mobilised a clause library and taxonomy project with respect to its global master securities lending agreement (GMSLA) documentation suite.
The 'Legal Clause Library & Legal Data Standards' white paper, produced in partnership with D2LT, a legal documentation consultancy, seeks to answer several key questions about where the industry is today and where it’s headed.
The paper reviews: how the industry is positioned today; a vision for what the strategic state looks like; the steps required to achieve this strategic state; how best to achieve adoption across the industry; and immediate next steps.
Short term next steps include the extension of the clause library and taxonomy in the same manner as the proof-of-concept (PoC), to be completed for the GMSLA clauses in 2021.
The library for the PoC clauses will be put under change control and a formal mechanism to allow any changes that are needed to conform the standard, due to regulatory, market, or other developments that occur over time, ISLA says.
Further ahead, possible future initiatives include the integration of the clause taxonomy and clause library into other ISLA Initiatives.
In the white paper, ISLA concludes that “in an increasingly data-driven world, firms are moving to operationalise their business through automating data-driven processes, allowing greater efficiency, scalability, and resilience through the medium of data”.
ISLA CEO Andrew Dyson says: “The work we are doing with D2LT sits at the heart of our digital agenda. This latest white paper puts this work in perspective, and sets a clear direction of travel for the industry as we look to maximise the use of this technology for our membership and wider industry stakeholder communities.”
Akber Datoo, CEO of D2LT, comments: “The GMSLA clause taxonomy and library initiative ISLA is undertaking this year seeks to digitise this agreement and will be a catalyst to unlock multiple business benefits for market participants by ensuring the documentation is connected to resource optimisation, risk mitigation, regulatory reporting and operational management of business processes through the medium of structured data.”
The white paper follows the expansion of the digital steering group’s pilot clause library and taxonomy subgroup last month, when ISLA called for greater collaboration on its digital agenda.
ISLA also laid out its full plans for 2021, including the common domain model and its environmental, social and governance initiatives at the start of the year.
Now read: Securities Finance Times Technology Annual 2020
