Consultation on legal framework expected to be available to users at launch of the UPI Service

 London, 2nd November 2021 – The Derivatives Service Bureau (DSB) today announces the opening of a consultation on the legal terms and conditions and client support model expected to apply to users of the Unique Product Identifier (UPI) Service, due to launch next year. The consultation sets out the proposals for users of the UPI Service as well as highlighting the resulting user experience for firms utilising the current OTC ISIN Service, and as such the DSB recommends that current and potential users review and respond to the questions set out in the consultation paper. The deadline for industry feedback is Wednesday 19th January 2022.

The DSB, was founded by the Association of National Numbering Agencies (ANNA), to facilitate the allocation and maintenance of ISINs, CFIs and FISNs for OTC derivatives, and was subsequently mandated by the Financial Stability Board as the sole UPI Service Provider to facilitate creation and distribution of UPIs globally.

The UPI is designed to facilitate effective aggregation of over-the-counter (OTC) derivatives transaction reports on a global basis. Reporting parties will be mandated to incorporate the UPI into their workflows and submit these to trade repositories once mandates come into effect in each of Africa, Asia, Australia, Europe and the Americas.

The DSB UPI Legal Terms and Conditions Consultation sets out a range of proposals aimed to align with industry feedback for the DSB to support the UPI Service within the existing DSB legal framework that is used for the OTC ISIN Service. Proposals include the use of a single overarching legal agreement with fee-paying users able to subscribe to OTC ISIN and/or UPI Services, introduction of a Client Onboarding and Support Platform (COSP), use of the Legal Entity Identifier (LEI) for user onboarding verification, use of pre-payment for lower value user fees, the fee model variables to be used for annual fee determination, the approach to termination, suspension and renewals, dispute resolution mechanism and the transfer of user data in the case of a contingency scenario, amongst others.

Emma Kalliomaki, Managing Director of ANNA and the DSB, said, “The DSB is an industry led utility, producing standardised OTC data for an evolving market. Good governance principles are at the core of the UPI, to ensure for a better service for the market. The DSB would like to encourage all interested parties to review the proposals of the UPI Legal Terms and Conditions Consultation and provide their feedback by 19th January 2022 when the feedback window closes.”

DSB webinars will take place on the 9th and 10th of November where an overview of the consultation will be provided. Any industry stakeholders who would like to participate can follow the link to the DSB website to register.

For more information on the UPI Legal Terms and Conditions Consultation, please visit our website: UPI Legal Terms and Conditions and our  UPI page.

 

 

ENDS

Media contact for ANNA
Lindsay Clarke
Streets Consulting
+44 (0)20 7959 2235
lindsay.clarke@streetsconsulting.com

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.

From Q3 2022, the DSB also expects to be providing Unique Product Identifiers (UPIs) for over-the-counter (OTC) derivatives to enable global regulatory authorities to aggregate data on OTC derivatives transactions to help assess systemic risk. This follows designation by the Financial Stability Board (FSB) in 2019 as the sole service provider for the future UPI system, performing the function of issuer of UPIs as well as operator of the UPI reference data library.

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

About ANNA

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 the website