First the Securities and Exchange Commission got excited about eXtensible Business Reporting Language and how the XML-based data tags would make public company financial filings more accessible to investors. So the SEC mandated public companies to use XBRL in their filings, beginning this year. Now, banking organizations are jumping on the XBRL bandwagon.
Wall Street & Technology Online reported last week that the Depository Trust and Clearing Corporation (DTCC) and the Society for Worldwide Interbank Financial Transactions (SWIFT) are partnering with XBRL U.S. to announce a plan "to create a shared taxonomy or classification scheme and to use existing message formats...so that corporate actions information can be easily and automatically shared."
The plan, which includes creating a corporate actions taxonomy aligned with ISO 20022 elements and creating unique identifiers for each corporate action, will allow announcement of actions ranging from dividends to rights offerings to mergers to be automated, and thus reduce company losses from such announcements. According to the story, "a 2006 study ... found losses on corporate actions worldwide were between $400 and $900 million each year."