The International Securities Lending Association (ISLA) has published code to describe securities lending transactions within the frame of the open source “core domain model” (CDM).

“A CDM encodes a transaction and the subsequent events that can occur explicitly and unambiguously, so that common inputs lead to common outputs throughout the lifecycle of a transaction,” writes Global Custodian, who picked up ISLA’s code release last week. The tool is meant to add consistency and interoperability across firms and platforms.

The plan to develop the code was agreed last year between ISLA and the International Swaps and Derivatives Association (ISDA). The Global Custodian article goes on to quote a comment by ISDA CEO Scott O’Malia:

“Having securities lending products and events added to the CDM is an important step in our shared ambition to create a single set of machine-readable standards that can be used across asset classes,” he says.