CUSIP Global Services (CGS), a leading provider of unique security identifiers and descriptive data that enable efficient global trading, today announced that it has secured an equity stake in the Derivatives Service Bureau (DSB), a fully automated utility created by the Association of National Numbering Agencies (ANNA) expressly for the purpose of allocating ISINs to OTC derivatives contracts.
Currently under development and scheduled for industry implementation in late 2017, the DSB has been designed to meet the particular requirements of the derivatives markets. It was developed to provide market participants with ISIN-based solutions for certain reporting requirements coming into effect, specifically around MiFID II, MiFIR and MAR. With ISIN being embraced as the global standard for these regulations, ISINs will be required for certain OTC derivatives transactions for the first time.
“We are delighted to work with our ANNA colleagues to make the DSB a reality and take an active role in its governance,” said Scott Preiss, Managing Director and Global Head of CGS. “Global regulators have recognized ISIN as the accepted global standard for cross-border trading, and the DSB will serve the unique, near-real time requirements for allocating identifiers to OTC derivatives.”
Created by ANNA as a subsidiary Special Purpose Vehicle, the DSB will be governed by a board of directors, on which CGS will hold a seat, alongside an industry-appointed Product Committee that determines the specifications for ISINs representing a broad range of derivative types.
“We are pleased and honored that CGS, which has long supported the globalization of ISO financial standards, has joined the list of organizations to support the DSB and its critical role as the first global numbering agency in extending ISO standards into the realm of OTC derivatives,” added Dan Kuhnel, Chairman of the ANNA board of directors.
The development timeline for the DSB tracks to the implementation of MiFID II, which is slated for January of 2018.