WASHINGTON, D.C. – The Derivatives Market Institute for Standards (DMIST) and FIA have announced the publication of the DMIST Execution Source Code Standard, an industry-developed framework designed to improve the accuracy, consistency and persistence of execution source information across the exchange-traded derivatives ecosystem.
The Execution Source Code Standard addresses a longstanding industry challenge: the lack of a reliable, end-to-end method to identify how a trade was executed and ensure that information is preserved from execution through clearing and downstream processing.
Execution source information plays a critical role in brokerage and fee processing, trade reconciliation and regulatory reporting. Inconsistent handling of this data can result in brokerage discrepancies, reconciliation breaks and increased manual intervention across the post-trade lifecycle.
As the industry moves towards greater automation and more time-sensitive workflows, the ability to accurately identify, capture and preserve execution source information has become increasingly important.
The standard establishes baseline expectations for market participants to capture, validate, transmit and preserve execution source data as authoritative reference data throughout the trade lifecycle.
It is intended to ensure that execution source information is populated at the point of execution, retained without reinterpretation or overwrite, and made available for downstream operational processes.
Applicable to exchange-traded derivatives transactions, regardless of asset class, execution method, protocol or geographic region, the standard provides a consistent framework that supports accurate brokerage treatment, reduces avoidable exceptions, minimises operational risk and enhances interoperability across global listed derivatives markets.
The DMIST Execution Source Code Working Group led the standard's development, with participation from client firms, brokers, exchanges, central counterparties, technology providers and other industry stakeholders. The effort built on FIA's previous work on execution source identification and drew on industry consultation, implementation analysis and cross-market collaboration.
Jason Stipe, global head of listed execution product at BNP Paribas and co-chair of the Execution Source Code Working Group, said, "The strength of the Execution Source Code Standard lies in its cross-functional design. Our working group has worked closely with clients, brokers, exchanges and CCPs to ensure that this standard is technology-agnostic and applicable across the entire listed derivatives lifecycle.
"We are not just proposing a new field; we are fostering a culture of data accountability that ensures every participant, from the independent software vendor to the clearing broker, plays a critical role in maintaining a seamless, automated market."
Staci Parrish, vice president, global Industry operations and execution at FIA, said: "The publication of this standard represents an important milestone in DMIST's mission to develop practical, industry-led standards that deliver measurable operational benefits.
"Execution source information underpins a wide range of post-trade functions, yet firms have historically captured and transmitted that data in different ways. As the industry moves towards increasingly automated, time-sensitive post-trade processing, firms need greater confidence in the quality and consistency of critical trade reference data."
Don Byron, executive director of DMIST, added: “This standard reflects extensive industry collaboration to establish a common framework for treating execution source information as authoritative reference data, supporting automation, improving consistency and helping to reduce operational friction across the listed derivatives ecosystem."
For more information about DMIST or any of its industry standards, please contact:
info@dmist-standards.org
Download the DMIST Execution Source Code Standard
ABOUT DMIST
The Derivatives Market Institute for Standards (DMIST) was formed to encourage widespread adoption of standards in the exchange-traded and cleared derivatives industry that will help make markets more efficient, resilient and competitive for all.
DMIST has 33 members, including executing and clearing brokers, exchanges and clearinghouses, clients, and service providers. Approximately 200 representatives from these firms contribute to the identification, development and implementation of standards.
DMIST is currently drafting standards for Persistent Tracer ID and Tags and Flags.
