SEC’s 2024 SRO Taxonomy introduces XBRL
The US Securities and Exchange Commission (SEC) recently implemented several rule amendments aimed at enhancing the settlement cycle for broker-dealer transactions and related processes. A draft taxonomy – the 2024 Self-Regulatory Organizations (SRO) Taxonomy – has now been published to support the new rules.
The amendments, effective from 5 May 2023, are designed to boost efficiencies in the securities transaction settlement cycle – resulting in a quicker standard settlement. Plus, security-based swaps get a bit of rule relief, and the settlement cycle for certain offerings is cut.
There’s also a new rule (17 CFR 240.17Ad-27) for clearing agencies. They’re now required to implement procedures that accelerate straight-through processing and submit an annual report tagged with machine-readable Inline XBRL via the SEC’s EDGAR system. The draft SRO taxonomy has been published to facilitate the tagging of information within these newly mandated annual reports.
Stakeholders are invited to review the draft SRO taxonomy, accessible here, and can provide feedback until 15 February 2024
