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Bank of England teases central counterparty data project

"... a concept has been developed for a centralised solution that will provide firms with an automated classification answer."

Bank of England Transforming Data Collection
BoE governor Andrew Bailey, left, at a press conference in 2022. 

The Bank of England may create a new centralised counterparty data catalogue as part of its “Transforming Data Collection (TDC)” programme – a simple and standardised way to refer to all parties in a transaction.

The data transformation programme was launched by the central bank and the Financial Conduct Authority in July 2021. On July 6 the two said that they had met their phase one commitments including overhauling and simplifying a landing page for financial firms’ statistical reporting.

Along the way however, they realised that “it was not possible to create a set of reporting instructions for Form DQ alone” (a quarterly report form).

Other proposals to create a “modernised representation of instructions and update associated public reference data” would also “not address the underlying problems effectively” the July 6 report adds.

Transforming Data Collection: ONS involved...

Now, it says, “a concept has been developed for a centralised solution that will provide firms with an automated classification answer for UK counterparties. The solution would mean a simpler process for firms, and eliminate the need for mapping work and interpreting instructions.

“This automated solution would also provide greater consistency of classification across reporting, and reduce inefficiencies on the side of both industry and the Bank… we hope to use this use case to improve data sharing processes at national level. Conversations have been started with the ONS as the owner of the national statistical business register.”

“Within these cross-governmental conversations, the team further emphasise the need for a centralised methodology that would allow for an unambiguous identification of counterparties at national level.”

See also: Bank of England appoints third CIO in just 12 months

The BoE is now “undertaking a technical discovery in order to understand what is possible and create a business case for the new solution.”

The Transforming Data Collection among other aspirations aims to make data collection “more consistent across domains, sectors and jurisdictions” and design a more “end-to-end” data collection process.

In a separate annual report published the same week, the Bank of England acknowledged that it was continuing “detailed planning” to try and address technology “obsolescence” and that “In common with most large organisations… is facing significant challenges in technology transition.”

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