DSB publishes Final Report from UPI Legal Terms and Conditions Consultation
London, 12th April 2022 – The Derivatives Service Bureau (DSB), founded by the Association of National Numbering Agencies (ANNA) to facilitate the allocation and maintenance of ISINs, CFIs and FISNs for OTC derivatives, and subsequently designated by the FSB as the sole Unique Product Identifier (UPI) Service Provider to facilitate creation and distribution of UPIs globally, has announced today the publication of the UPI Legal Terms and Conditions Consultation Final Report and draft user legal documentation.
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 Africa, Asia-Pacific, Europe and the Americas.
The Final Report focuses on summarising industry feedback received on the consultation paper on the DSB legal terms and conditions and confirms the legal provisions and associated mechanisms to be taken forward with respect to DSB legal documentation. The existing DSB legal framework for OTC ISIN, which is subject to annual industry consultation, has been leveraged with proposed revisions being largely structural and process related to ensure that they are fit-for-purpose for both the OTC ISIN and UPI Services such that there is a Common Agreement.
Stakeholder feedback to the consultation has been considered in the drafting of the revised legal documentation covering a range of topics such as introduction of a UPI 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.
The DSB encourages all stakeholders to review the Final Report and draft legal documentation, as both are relevant to existing OTC ISIN users as well as prospective UPI users.
Emma Kalliomaki, Managing Director of ANNA and the DSB, said, “The DSB continues to collaborate with stakeholders to ensure the UPI Service is fit-for-purpose and the objectives of the Service align with the DSB principles, such as cost recovery, reasonable and non-discriminatory (RAND) access and equal treatment, preserving the DSB common agreement and ensuring parity and efficiency in delivery of DSB Services. The DSB encourages all interested parties to review the draft legal documentation and send any feedback over the coming months.”
Industry feedback on the proposed amendments to the DSB Agreement and DSB Policies is welcome, with any feedback to be submitted by 2 September 2022 via firstname.lastname@example.org.
All materials on the Consultation, Final Report and legal documentation are available on the DSB website.
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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. The DSB has also been designated by the FSB as the sole UPI Service Provider to facilitate creation and distribution of UPIs globally, 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.
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