Road map

Busy times

Over ten months ago, we launched our first post-beta openfunds fields list with version number 1.0. At that time, we were convinced we would strike the right balance of not having too many new releases, but also not waiting too long in order to keep the necessary changes with each release to a minimum. Our intention was to launch a new version of openfunds approximately every six month to achieve these goals.

When October 2016 arrrived, however, the industry was asking us for a PRIIPs solution. This would have meant quite a lot of new fields, but more importantly, it wasn’t very clear how to handle the requirements. Too much was unknown.

Since then, there has been lot of uncertainty within the market not only because of PRIIPs, but also because of MiFID II, both of which come into effect at the beginning of 2018.

We have been working on fields addressing several areas with experts from different fund distributors. This is why we decided in spring 2017 to divide the different fields into multiple streams based on category in order to keep the creation of new fields manageable.

The advantage of this approach for a supporter of openfunds is that he or she can concentrate just on the fields of interest, e.g. because he or she has to implement them into an existing or new database infrastructure. On the negative side, there might be some overlap and also a comprehensive overview appears quite complex. In total there are nine streams, although stream number 4 and stream number 7 are sub-streams of streams 3 and 5:

  1. New fields and field changes
  2. Dynamic data fields
  3. MiFID II fields
  4. MiFID II target market fields
  5. PRIIPs fields
  6. PRIIPs & MiFID II cost fields
  7. Solvency II fields
  8. Execution fields
  9. News fields

Some numbers

Let’s get a little more specific. Version 1.0 has a little bit more than 190 fields. All new fields for version 1.1 may add up to another 160 to 180. If we could have, we would have liked to have avoided such a long list of new fields, but the regulations are compelling openfunds to define these fields so that supporters of openfunds can use a single coherent system of data fields to cover most of today’s data requirements.

The following chart gives you an impression about the different streams of new fields. The size of the arrows represent a rough indication about how many fields have to be implemented in openfunds for the different streams, and how the total number of fields evolve by reading the chart from the left side which indicates version 1.0, to the right side which represents version 1.1.

The following chapters give you an idea what the fields are about. A list of all fields actually discussed by the openfunds board, however, is only available to active members who have registered via the form on this website.

I. New fields and field changes

This section lists all fields that were asked for by openfunds members and accepted by the openfunds board. Also, all changes are listed within a changelog. These changes are mainly initiated by practitioners working with the openfunds standard.

II. Dynamic data fields

This is a new type of fund data that openfunds is covering. The main difference as compared to static data is the dynamic data’s ability to store and also to transmit time series. Examples for dynamic data are Net Asset Values (NAV), Assets under Management (AUM), Dividends etc. Also, MiFID’s necessity to store ex-post cost data leads to the categorisation of these values as dynamic data.

Dynamic data fields typically start with “OFDY”… instead of static data’s “OFST”…. Besides that, the file format for data transmission of dynamic data also looks different compared to a file containing static data.

All dynamic fields that are currently being discussed by the openfunds board are available for registered active members within the ‘New fields (beta)’-section of the ‘Fields’-menu.

III MiFID II fields

MiFID II (Directive 2014/65/EU) is the revision of ‘The Markets in Financial Instruments Directive (2004/39/EC)’ and is accompanied by ‘Regulation (EU) No 600/2014 on markets in financial Instruments (MiFIR)’.

The implementation of these regulations requires investment in database applications and will also require the launch of middle sized projects within the industry. As all solutions will be heavily dependent on fund data, openfunds was asked by many industry participants to develop a solution. This is what we have done over the last couple of months and we are proud to show our members our solution that is based on the European MiFID Template (EMT) of the European Working Group (EWG).

MiFID II covers the two main areas ‘Target Market’ and ‘Cost and Charges’. These broad categories are split up into several more detailed sub-categories. The new MiFID II fields openfunds will soon introduce consist of these categories:

  • Target Market – Client type
  • Target Market – Knowledge and experience
  • Target Market – Ability to bear losses
  • Target Market – Return profile
  • Target Market – Risk tolerance
  • Target Market – Time horizon
  • Target Market – Distribution strategy
  • Cost and charges – Ex-ante
  • Cost and charges – Ex-post

A detailed list of openfunds fields (beta) covering the above mentioned topics is available in the public section of this website.

IV. MiFID II target market fields

A good summary of MiFID’s target market concept can be found on the European Securities and Markets Authority’s (esma) website. The ‘Final Report – Guidelines on MiFID II product governance requirements’ gives good insight into how the target market should be narrowed down from the manufacturer’s perspective (who usually does not know the clients of the distributor, and who should have a strategic view on how to market funds to different types of clients). The following chart displays this concept of ‘Target Market’.

In the public section of this website members can download a list of openfunds Target Market fields and their translation into the equivalent fields of the latest European MiFID Template (EMT).

V. PRIIPs fields

This section provides an overview of all openfunds fields that might be introduced because of the European PRIIPs Regulation. The two main categories of openfunds’ PRIIPs fields are:

  • PRIIPs fields that are needed to produce the PRIIPs KID as a document in PDF format.
  • PRIIPs fields that are needed for insurance companies in order to produce a separate PRIIPs KID for multi option products (MOP).

As it seems that the industry will agree on the European PRIIPs template as it was established by the European Working Group, openfunds has adapted this EPT very closely and has created new openfunds fields if an appropriate field did not already exist.

In the public section of this website members can download a list of openfunds PRIIPs fields and their translation into the equivalent fields of the latest European PRIIPs Template (EPT).

VI. PRIIPs & MiFID II cost fields

Even before the EU PRIIPs and MiFID regulations forced the industry to publish some cost information about their funds, openfunds had already included some cost fields as management fees, ongoing charges or total expense ratio.

The new thing about costs being introduced with the PRIIPs and MiFID regulation is the attempt by the regulator to specify the calculation methods for the different cost figures. Additionally, the regulator distinguishes for the first time between ex-ante and ex-post cost figures. This has lead to some conceptual questions about data handling within openfunds as for ex-post cost figures there is a need of storing and transmitting time series. This is one reason why openfunds distinguishes between static fields (with data-IDs all starting with ‘OFSTxxxxxx’) and dynamic fields (starting with ‘OFDYyyyyyy’). More information on dynamic fields can be found in stream ‘II. Dynamic fields’ on this page.

The following graph gives an conceptual overview of the relevant cost and charges fields as mentioned in either the European PRIIPs Template (EPT) or the European MiFID Template (EMT). This chart does not yet contain openfunds data-IDs as the fields are still under discussion within the openfunds board. In the non-public section of this website openfunds provides a beta version of these fields with their respective data-IDs (draft).

VII. Solvency II fields

The following list contains an extract of the Solvency II fields as defined in the Tripartite Template version 3 (TPT). It focuses on aggregate figures that can be used by insurance companies to define their capital requirements when investing in specific share classes (click to download as PDF).

More information can be found in the whitepaper ‘Solvency II Fields’.

The openfunds committee would like to thank SolvencyAnalytics, Z├╝rich, who provided all solvency field descriptions and the whitepaper.

VIII. Execution fields

For some time openfunds has defined some execution fields. However, there were some important fields missing as well as some fields that were not defined in a way that professionals from fund execution desks could use without additional specification outside openfunds’ field range. For this reason, openfunds invested quite some time setting up a reliable system of fields that are able to provide very useful and comprehensive information to execution pros.

The following chart gives a rough indication about the different stages of a trade cycle and shows some of the most important execution fields:

IX. News fields

In spring 2017, openfunds was asked to provide field definitions required to store and transmit news on funds, their managers, etc. This is one thing we did during the last couple of months so that we can now provide a list of around two dozen openfunds fields that make it possible to transmit fund-related news from fund houses to fund distributors.