The Derivatives Service Bureau recently announced the members of its newly formed Technology Advisory Committee (TAC). The mission of the TAC is to provide guidance and recommendations to the DSB Board on technology implementation and investment to support the DSB role as a critical market infrastructure for providing financial instrument identifiers. As part of the DSB governance structure, it will also enable the DSB to sample industry sentiment regarding potential changes in services or performance.
The Derivatives Service Bureau is a new global reference data utility, launched in October 2017, that enables users to create ISO identification codes for regulatory reporting and operational management of OTC derivatives. These codes include the International Securities Identification Numbers (ISIN), Classification of Financial Instruments (CFI) and Financial Instrument Short Name (FISN).
More information about the TAC is available at the DSB website.
Due the high level of industry interest in participating in the TAC, the DSB Board amended the TAC charter to increase the maximum number of participants from 20 to 40. The committee is comprised of representatives of banks that are systematic internalizers in the OTC derivatives markets, derivatives trading venues, related businesses, trade associations, independent experts and regulators. DSB Board Member Marc Honegger of Six Financial Information AG has agreed to take the role of board sponsor to the DSB.
“We are honoured to welcome these experts into the planning process of the DSB,” said Emma Kalliomaki, managing director of the DSB. “The DSB has been launched in a period of significant change in the derivatives industry, particularly in the realm of regulation and reporting. The TAC will be crucial to our readiness to meet the evolving challenges of instrument identification.”
Among the TAC membership, David Broadway of the Investment Association has been named chair of the TAC. “The DSB executes a critical market function in uniquely numbering the most complex financial instruments under the ISO 6166 standard,” notes Broadway. “Given the relative youth of the DSB, the diversity of the TAC membership will be especially beneficial to ensure its technology infrastructure meets the requirements of industry and regulators.”
The TAC includes the following representatives:
· Citigroup: Souvik Deb, Vice President, Regulatory Reform
· Credit Suisse: Prem Ananthakrishnan, IT
· HSBC: Andrew Woolley, MiFID II Technical Architect
· Lloyds Bank: Stephen Pond, FI E-trading & Rates Pricing Development Manager
· Morgan Stanley, Shari Lines, Finstrument Reference Data Architect
· Rabobank: Gouri Khatua, MiFID II Project Manager, Compliance, Europe
· Standard Chartered Bank, Andrew Poulter, Sabre Development Manager
· State Street Bank, Kimberly Cohen, MD Business Technology Solutions
· UBS: Tony Chau, Investment Bank CTO for Regulatory Initiatives
· BGC Partners: Jimmy Chen, Development Manager
· Bloomberg LP: Chris Pulsifer, Software Development Manager
· NEX Group: Ziv Yankiwitz, Vice President, Research and Development
· State Street FX Connect: Tony Flamand, Head of Regulatory Reform’
· Thomson Reuters MTF: Alex Pett, Senior Technologist, Transactions Admin
· Asset Control: Martijn Groot, Vice President, Product Management
· Simplitium: Aanya Madhani, Head of Product Development
· SIX Service Group AG: Stephan Schaub, Senior Architect
· SmartStream: Rocky Martinez, Chief Technology Officer
· Thompson Reuters Data: Michael Doody, Global Partnership Director, Data
· BVI German Investment Funds Association: Felix Ertl, Vice President, Legal
· EFAMA European Fund and Asset Management Association: Vincent Dressard, Senior Regulatory Policy Advisor
· FIX Trading Community: Hubert Kreschmer, FIX Global Technical Committee
· Investment Association: David Broadway, Investment Operations Lead
· ISDA International Swaps and Derivatives Association: Karel Engelen, Senior Director
· Jim Northey, ex officio as ISO TC 68 Chair Elect
· Bill Nichols
· ESMA European Securities and Markets Authority: Olga Petrenko, Senior Officer, Markets
· FCA Financial Conduct Authority: Paul Everson, Senior Associate, Market Oversight
· JSDA Japan Securities Dealers Association: Eiichiro Fukase, General Manager
The first meeting of the TAC is planned for 27 June. Topics in the meeting are expected to be potential changes in user services and performance standards, resiliency resources and technology investments that are currently under consideration in the current industry consultation on the 2019 DSB fee model.
As the DSB operates its numbering agency functions under a cost-recovery regime, investments in enhanced services, increased resiliency and different performance standards have implications on user fees. The proposals in this consultation are available at the DSB website, including the recording of the webinar that opened the discussion, the graphical presentation with topic details and the link to the online feedback template. Industry feedback is due to email@example.com no later than 5pm UTC on Wednesday 13th June 2018. After an evaluation of responses, the DSB will open a second fee model consultation with further details on changes and costs for industry feedback to finalize the plan for next year’s fee model.