ABSTRACT
Chapter 2 examines the foundations of CDS 3.0 frameworks by analogy with building a house – and considers three critical elements of that process: (i) blueprints, (ii) boundaries and (iii) building blocks. The ‘blueprints’ in Section 2.1 refer to the different regulatory approaches towards CDS 3.0, from voluntary and purely facilitative models to formal prescriptive legal frameworks. After examining the alternative approaches, the section argues that prescriptive regimes are better placed to address the risks of market concentration which CDS 3.0 may well facilitate by giving rise to large technology platforms known as data aggregators. Section 2.2 examines the legal boundaries of third-generation CDS platforms by analysing the complex relationship between them and competition, consumer, privacy and information security laws. Finally, Section 2.3 provides a general overview of the key components (building blocks) of CDS 3.0 frameworks, which are then analysed in greater detail in subsequent chapters.
