On December 23rd, President Biden signed into law H.R. 7776, the “James M. Inhofe National Defense Authorization Act for Fiscal Year 2023,” which includes Title LVIII, the Financial Data Transparency Act (FDTA). Under the FDTA, the use of data standards is required by member agencies of the US Financial Stability Oversight Council, which includes the SEC, the US Treasury, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency, the Bureau of Consumer Financial Protection, and the Federal Reserve System.
Requiring standardized data and identifiers over all government agencies would reduce costs, increase transparency, improve the usability and timeliness of information, and make it easier and less expensive for regulators to modify reporting requirements when needed. The standardized data mandate associated with municipal securities will be established under the final rules and enforced by the SEC. The standards will:
be open and nonproprietary
include common identifiers
render data searchable and machine-readable
XBRL (the eXtensible Business Reporting Language) represents a robust method of meeting the structured data requirements of the act and is already in use by numerous regulatory agencies, including the SEC, the FERC, and the FDIC. The Financial Data Transparency Act is supported by XBRL US, as well as other members of the financial reporting community.