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You want transparency? Tag it…

One of the easist ways to create transparency in financial markets is to break documents or processes into pieces and tag them… this is the approach that FIX, the standard for electronic trading of securities takes and  XBRL does for financial reporting...

Some have suggested this approach for asset backed securities… the products which lie at the heart of the financial crisis… that would immediately remove the opacity of these securities which are not structured in standardized ways…

Having been involved in slowly migrating an industry to a new approach I know that adoption generally happens when new processes are devloped or new infrastructure is built. Because we are now engaged in creating new frameworks for regulatory oversight it is imperative that we adopt as many standardized reporting processes as possible…

The SEC had an public seminar yesterday for those who build apps that use issuer information… this should just be the beginning of the use of XBRL at the Commission… credit ratings, mutual fund reporting, asset backed securities… looking forward to new applications…

SEC Public Seminar on New Interactive Data Reporting Requirements
Wednesday, June 10, 2009 

Press Release
Panel 1 Slides
Panel 2 Slides
Webcast Archives
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