Financial Services & RegTech

Incentivizing Improved Market Data and Regulatory Technologies

Market and RegTech (regulatory technology) data reflect information collected and used in the financial regulatory system. Data are gathered through regulatory reporting and involves the application of emerging technology, supported by the use of open data standards. Proposals to modernize the financial regulatory reporting system to require standardized, machine-readable data will foster an environment for emerging technologies and applications. This will improve efficiency within the financial sector and regulatory reporting. RegTech applications can republish, analyze, and automate reporting processes providing deeper insight, cut costs, and enhance fraud prevention. Government and industry must work together to standardize, share, and use high-quality regulatory data.

The Data Coalition advocates for policies to modernize the financial regulatory system’s reporting requirements, facilitating cooperation between regulators and regulated industries. Activities include: 

• Modernize financial reporting to reduce burden and strengthen transparency, including the implementation of new statutory requirements. 
• Development and adoption of consensus data standards for new industry-lead risk disclosure metrics on environment and natural resources.
• Implementation Priorities: Engaging with the rulemaking process for the implementation of the Financial Data Transparency Act. 

Key Law

Blogs

• FACT SHEET: Financial Data Modernization Proposal Promotes Transparency, Efficiency, and Accountability
• Exploring RegTech: The Intersection of Regulation, Data, and Technology
• Open Data Standards: New Opportunities for RegTech
• Data Standardization – A Call to Action in the United States
• How Data Standards Will Modernize Our Government’s Regulatory Regime

Press Releases and Statements

• Data Coalition Applauds Congress for Passing Major Financial Transparency Bill, December 15, 2022
• House Financial Services Committee Leadership Re-introduces the Financial Transparency Act, September 24, 2019
• After Five Years the SEC Votes to Adopt Inline XBRL for Corporate Financial Filings, June 29, 2018
• XBRL and LEI Gain Another Advocate Within the SEC, October 24, 2016
• Replacing Financial Reports with Data Could Save Billions, December 2, 2015

Resources

• Financial Data Transparency: 2022 Forum Compendium, May 5, 2022
• Recording: RegTech Data Summit 2022, March 16, 2022
• Report: Improving ESG Data: Recommendations for improving the data ecosystem for environmental, social, and governance data, January 22, 2022
• Recordings of the Data Coalition virtual event: RegTech Data Week 2020, April 20-22, 2020 - 1, 2, 3
• Data Coalition Webinar: "Realizing the Benefits of the Financial Transparency Act," April 8, 2020
• Data Coalition Endorsement of the Financial Transparency Act, September 25, 2019
• Transparent State and Local Financial Reporting: The Case for an Open Data CAFR, December 5, 2018, Jim Harper and Dean Ritz
• Thomson Reuters RE: H.R. 5054, Small Company Disclosure Simplification Act of 2018, June 5, 2018, Gregory Boyd
• Morningstar RE: H.R. 5054, Small Company Disclosure Simplification Act of 2018, May 23, 2018, Aron Szapiro
• Open Data for Financial Reporting: Costs, Benefits, and Future, September 22, 2017, Marc D. Joffe
• New Video Shows the Future of Regulatory Compliance: Automatic, Seamless, Streamlined, August 22, 2017, Data Foundation
• Standard Business Reporting: Open Data to Cut Compliance Costs, March 13, 2017, Hudson Hollister, Joseph Kull, Michael Middleton, and Michal Piechocki