Great piece about the need for definitional consistency, perhaps with the help of a Uniform Product Identifier.
A key area of change has been in the over-the-counter (OTC) derivatives space where new mandates...highlighted a major problem for all firms: product identification. Many of the regulations are tied to individual product types....[However]...What one firm calls product ABC, another may call DEF. Making matters worse is that the regulator may call the same product XYZ. Anyone who has worked on implementing the new Dodd-Frank rules will have experienced the difficulty of deciding which rules apply to which trades and positions and how such trades need to be classified when reporting. While the problem may have been brought to light by the implementation of rules for OTC derivatives, it also exists within a range of asset classes, including loans and mortgages. It is an issue that runs across asset classes for functions that need to include all of a firm’s positions but treat them differently based upon product type.