London, 27 July 2021: The Derivatives Service Bureau (DSB), founded by the Association of National Numbering Agencies (ANNA) to facilitate the allocation and maintenance of International Securities Identification Numbers (ISINs), Classification of Financial Instrument codes (CFIs) and Financial Instrument Short Names (FISNs), for OTC derivatives, has today announced the timeline for forthcoming consultation on the Legal Terms and Conditions for the Unique Product Identifier, (UPI) .
UPIs will be assigned to over-the-counter (OTC) derivatives products and used for identifying the product in transaction reporting data. As the designated UPI Service Provider and sole issuer of UPI codes as well as operator of the UPI reference data library, the DSB is preparing for the launch of the UPI service to align with regulatory adoption of the UPI, anticipated from late 2022 onwards.
Following two UPI Fee Model consultations, a further DSB industry consultation will be undertaken on the Legal Terms and Conditions for DSB provision of the UPI service. In providing advance notice of the consultation to commence in November 2021, the DSB is seeking to provide market participants with sufficient time to aid planning and resource alignment where necessary.
The DSB encourages all market participants that report to trade repositories, and will need to incorporate the UPI into their workflows, to review and respond to the consultation, so that a broad spectrum of views can be reflected in the service that is introduced in 2022.
Industry feedback received will be considered in the drafting and publication of the final UPI Access and Usage Agreement. The DSB UPI Legal Terms and Conditions Consultation timeline is outlined below:
- November 2nd 2021: Publication of DSB UPI Legal Terms and Conditions Consultation Paper.
- November 9th 2021: Explanatory Webinar 1 (timing preferable for Australia & Asia) *** Register ***
- November 10th, 2021: Explanatory Webinar 2 (timing preferable for EMEA & Americas) *** Register ***
- April 12th, 2022: Publication of DSB UPI Legal Terms and Conditions Consultation Final Report and UPI Access and Usage Agreement
Emma Kalliomaki, MD of ANNA, said, “We are keen to encourage as many market participants to become involved through our extensive consultation process, to work with us to shape the UPI standard identifier. We encourage industry collaboration as we know it is important to the market that the UPI help industry provide effective use of OTC trade reporting data, including minimising systemic risk and helping detect market abuse. We would encourage any user to respond as we’d very much like to receive broad geographical and wide sector feedback on the proposals.”