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A Tool for Systemic-Risk Analysis Is Making Some Long-Awaited Headway

April 26, 2024 | 1 minutes reading time | By Michael Shashoua

The ACTUS data standard is seen as helping regulators to identify brewing crises early enough to take mitigating actions.

A more stable financial system emerged from the global crisis of 2008 and has proved to be resilient in the face of subsequent shocks. But one provision of the Dodd-Frank Act, the 2010 U.S. law that codified key post-crisis reforms, remains a work in progress after not being executed as thoroughly as its advocates had envisioned.

The issue revolves around collection and analysis of financial institution and market data to alert regulators to potential systemic vulnerabilities before they morph into full-blown crises. Although the vehicle that Dodd-Frank created for that purpose, the U.S. Treasury Department’s Office of Financial Research (OFR), has a now-sizable body of work, Allan Mendelowitz has for years been campaigning for data standards, collectively called ACTUS, to help close remaining analytical gaps.

He is getting closer to the goal. The OFR, among others, has begun making use of ACTUS.

“I believe ultimately the logic of what we’ve presented is so compelling that it will become the norm at some point,” Mendelowitz said recently. “It’s taking much longer than anticipated.”

Contracts at the Core

ACTUS is an acronym for...

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Topics: Data

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