The Data Standardization Challenge

The Data Standardization Challenge

Kathryn Judge, Richard Berner

Series number :

Serial Number: 
438/2019

Date posted :

February 04 2019

Last revised :

January 26 2019
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Keywords

  • data standards • 
  • financial regulation

Data standardization offers significant benefits for industry and regulators alike, suggesting that it should be easy. In practice, however, the process has been difficult and slow moving. Moving from an abstract incentive-based analysis to one focused on institutional detail reveals myriad frictions favoring the status quo despite foregone gains.

This paper explores the benefits of and challenges confronting standardization, why it should be a top regulatory priority, and how to overcome some of the obstacles to implementation. The paper also uses data standardization as a lens into the challenges that impede optimal financial regulation. Alongside capture and other common explanations for regulatory failures, this paper suggests that coordination problems, delayed benefits, and other banal, but perhaps no less intractable, challenges are often the real impediments to better financial regulation.

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Published in

Published in: 
Publication Title: 
Forthcoming in Systemic Risk in the Financial Sector: Ten Years After the Great Crash, edited by Douglas W. Arner, Emilios Avgouleas, Danny Busch and Steven L. Schwarcz (CIGI Press)
Description: 
Forthcoming Fall 2019

Authors

Real name:
Richard Berner