Derivatives Service Bureau launches UPI Service amid increased scrutiny of OTC derivatives
To make the onboarding process smoother, the DSB has also launched a self-service Client Onboarding and Support Platform (COSP). This platform enables users to subscribe to the UPI Service and guides them through the complete onboarding process, including API certification and support ticket management.
In a move designed to bolster market readiness for impending regulatory mandates, the Derivatives Service Bureau (DSB), the single-source reference data hub for Over the Counter (OTC) derivatives, has officially launched its Unique Product Identifier (UPI) Service.
This new offering will allow firms to create and search for UPIs, an essential element for tracking systemic risk in the financial markets.
Aggregation of OTC derivatives transactions reported to trade repositories
Developed in alignment with International Organization of Standardization (ISO 4914 UPI), the UPI system aims to enable aggregation of OTC derivatives transactions reported to trade repositories. By doing so, regulators can closely monitor the build-up of systemic risk on a global scale.
The Financial Stability Board (FSB) has designated the DSB as the sole UPI Service Provider to support the creation and distribution of UPIs globally. UPI reporting will begin in the U.S. on January 29, 2024, followed by the EU EMIR Refit regulations on April 29, 2024, and the UK’s own EMIR Refit on September 30, 2024. Other G20 countries, including Australia, Singapore, and Japan, are expected to adopt UPI reporting in due course.
Emma Kalliomaki, Managing Director of ANNA and the DSB, celebrated the launch, stating, “This is a major milestone following long-term collaboration among authorities, industry, and the DSB. In launching the UPI Service three months in advance of the first reporting compliance date, the DSB provides the market with time to incorporate the UPI into their reporting workflows.”
To make the onboarding process smoother, the DSB has also launched a self-service Client Onboarding and Support Platform (COSP). This platform enables users to subscribe to the UPI Service and guides them through the complete onboarding process, including API certification and support ticket management.
Given the looming regulatory deadlines and increased scrutiny of OTC derivatives, the rollout of the DSB’s UPI Service is a timely addition to the financial services landscape. By offering firms the ability to create and search for UPIs, the DSB is not just complying with regulatory mandates but is also facilitating a more transparent and efficient market infrastructure.
DSB serves as the global reference data source for OTC derivatives, while ANNA seeks to foster standardization within the financial industry through the promotion of ISIN, FISN, and CFI codes for financial instruments. Both organizations have a shared history of collaborative work with market participants, regulators, and other standards bodies to uphold the ISO principles.
