Machine-readable regulation

Spec sheet // Glossary // MACHINE-READABLE REGULATION
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Glossary · Regulatory change

Machine-readable regulation

Also called rules as code, machine-executable regulation

Definition

Machine-readable regulation is regulation published in a structured format that software can read and process, not just people. It can range from tagged legal text to rules coded as logic that systems execute directly. The aim is to cut the time and errors involved in turning rules into compliance processes.

01 LEGAL TEXT02 TAGGED RULE03 EXECUTABLE LOGIC
Fig. 1 · Machine-readable regulation
FDTA joint data standards · ESAP Regulation
Key rulesFDTA joint data standards · ESAP Regulation
Applies toNine US financial regulators, before agency-specific adoption for filers
RegionsGlobal · UK · EU · US
01

How it works

A regulator or firm breaks a rule into defined data points, conditions and outcomes. These are tagged or coded in a standard format, so systems can map them to internal data and controls. Reporting rules are the most advanced case. Supervisors and banks have tested coding reporting instructions so firms run the same logic and produce consistent returns.

Firms spend heavily interpreting rules and rebuilding them in their own systems, often with different results. Shared, structured rules reduce those gaps and make updates faster. Common data standards are a first step. The US Financial Data Transparency Act requires joint data standards across financial regulators, and the EU is building a single access point for financial disclosures.

Step 1Structure the textBreak rules into data points and conditions
Step 2Tag or codeExpress each rule in a standard format
Step 3Map to dataLink coded rules to internal data fields
Step 4Test outputsCompare automated results with expert interpretation
02

The rules

US · 25 June 2026FDTA joint data standardsFinancial Data Transparency Act Joint Data Standards final rule

Sets common identifiers and machine-readable data standards for financial regulatory data, effective 1 October 2026.

Nine US financial regulators, before agency-specific adoption for filers
EU · 20 December 2023ESAP RegulationRegulation (EU) 2023/2859 establishing a European single access point

Creates a single EU access point for financial and sustainability disclosures, collected in electronic, data-extractable formats.

Entities publishing information under listed EU financial services laws
03

Common questions

Is machine-readable regulation the same as compliance as code?

They are related. Machine-readable regulation is about how rules are published. Compliance as code is how firms build rules into their own systems and controls. Structured rules make compliance as code easier to build and maintain.

Does any regulator publish fully coded rules?

Most work so far covers reporting rules and data standards rather than whole rulebooks. Regulators in the UK, EU and elsewhere have run pilots coding reporting instructions. Legal text usually remains the binding version.

What are the main benefits?

Consistent interpretation across firms, faster updates when rules change and fewer manual errors. Supervisors also receive more comparable data, which makes analysis and oversight quicker.

What are the limits?

Many rules rely on judgement, such as fairness or proportionality, that does not translate cleanly into code. Firms and regulators must also agree on which version is authoritative if code and legal text differ.