Derivatives Service Bureau Announces 2019 Fees and Increase in Users
Higher number of overall users, with an increase in the diversity of those using the service
London, 11am, 5th December 2018 – The Derivatives Service Bureau (DSB), the fully automated generator of International Securities Identification Numbers (ISINs) for the OTC derivatives market, today published their User fees for 2019. The DSB provides a trusted service which puts the user first, working on a cost recovery basis only. This coming year’s User fees reflect the increase in the number of DSB Users, as well as some User type adjustments following a year of operational activity which has enabled Users to have a better view of their connectivity requirements.
The DSB is the first numbering agency designed to operate globally and provide near real-time allocation of ISINs. With an underlying technology platform that can handle multiple taxonomies of definitions and descriptive data, the DSB is a global utility enabling financial products to be recognised and traded between buyers and sellers around the world and subsequently efficiently processed, managed and administered by post-trade teams. Now used in 33 countries, the DSB was established by the Association of Numbering Agencies (ANNA) in 2017, and has just completed its first full year of providing the OTC derivative ISIN service.
Moving into its second year of operations, the 2019 fees reflect the normal and expected yearly adjustments, allowing for industry’s own recalibrations following this past year’s implementation requirements resulting from MiFID II, and additional functionality requested by industry during the annual consultation process.
Power Users, DSB Users who require programmatic connectivity to ISINs in real-time, have dropped slightly in number from 78 to 73, reflecting a shift by some Users to the Standard or Infrequent User type and to the consumption of the DSB’s free end of day data. This has meant that whilst overall costs have reduced slightly in 2019, there is a slight increase in the per user fees for Power and Standard User fees by 4.5% for next year. Infrequent Users (a category created to assist low volume and/or ad-hoc users) will see their fees unchanged in 2019. Additionally, there are now 12 Standard Users up from 10, and 29 Infrequent Users, up from 15 meaning the number of fee paying Users of the service has grown from 105 this year to 114 for the coming year.
With the overall User figures increasing, and the Infrequent Users having doubled, this reflects the increasingly diverse types of organisations using the service. Registered Users, who comprise the largest category of users making up two-thirds of the DSB’s user base, continue to access the full spectrum of OTC ISIN data free of cost. The banks continue to pay the larger percentage of the User fees, at 56%, with trading venues making up 31%, and other categories, such as the buy-side and data vendors, totalling 13%.
Emma Kalliomaki, Managing Director of ANNA and the DSB, said, “We are committed to the use of international standards to make the OTC derivatives market a more stable and efficient environment within which to trade. The DSB offers a cost-effective, reliable and robust automated service for providing ISINs, which are both agile and flexible to adapt to industry and regulatory requirements.”
Full details of the 2019 user fees a can be found on the DSB website.
The Derivatives Service Bureau (DSB) Ltd
The Derivatives Service Bureau is a global numbering agency for OTC derivatives serving the needs of market participants through the allocation of International Securities Identification Numbers (ISINs), the Classification of Financial Instruments (CFI) and Financial Instrument Short Name (FISN), all globally recognised and adopted ISO standards for identifying, classifying and describing financial instruments. With an underlying technology platform that is built to support multiple taxonomies of definitions and descriptive data, as well as numbering in near-real-time, the DSB is motivated to bring greater transparency and integration within the OTC derivatives market, enabling institutional investors to standardise data and better control operational risk. Users can access the DSB through a web interface, by accessing data in daily update files or by direct integration to front-office systems for trading and order management.
The DSB is a legal subsidiary of the Association of National Numbering Agencies (ANNA). With widespread industry representation, expertise and collaboration at its core, the DSB’s history, pedigree and expertise are rooted in ANNA, with its broad experience and overview of handling both on and off-exchange ISINs for all asset classes. If you would like to use the Derivatives Service Bureau please visit the DSB website
The Association of National Numbering Agencies (ANNA) is a global member association seeking to foster standardisation within the financial industry by upholding the International Organization for Standardization (ISO) principles and by promoting ISIN, FISN and CFI codes for financial instruments. This is achieved through ongoing, collaborative work with market participants, regulators and other standards bodies.
Under ANNA’s stewardship, the role of the ISIN in enabling global financial communications has been established worldwide. Founded in 1992 by 22 numbering agencies, today ANNA’s membership continues to grow, with more than 120 global members and partners allocating ISIN, FISN and CFI codes on behalf of their local jurisdictions. By putting in place rigorous governance around the development, allocation and sharing of ISIN, FISN and CFI codes, ANNA helps facilitate open, transparent markets diminishing barriers to access, while protecting the integrity of the standards. As a result, ISIN has become the recognised global standard for unique identification for all types of financial and referential instruments, helping to connect and protect global markets.
In addition, ANNA has established the Derivatives Service Bureau (DSB), a fully automated global numbering agency to meet the specific operational and regulatory requirements of the over-the-counter derivatives markets.
For information about ANNA, its members and activities, please visit anna-web.org.