Now calling for industry preparations in readiness for global regulatory requirements
The Derivatives Service Bureau (DSB), the global golden source of reference data for Over the Counter (OTC) derivatives, today announces the launch date for the Unique Product Identifier (UPI) Service following the publication of the CFTC Designation Order[1] confirming the UPI to be required in Recordkeeping and Swap Data Reporting in the United States from 29 January 2024.
To aid industry implementation of the UPI, the DSB’s UPI User Acceptance Test (UAT) environment will be available from 17 April 2023, nine months prior to the United States regulatory mandate coming into effect. The DSB UPI Production environment will be available from 16 October 2023, three months prior to the United States regulatory mandate coming into effect.
Upon the launch of the DSB UPI Service in UAT, the DSB Client Onboarding and Support Platform (COSP) will also become available. The COSP is an online, self-service platform enabling users to onboard to the UPI Service and manage their UPI user access and connectivity requirements.
The DSB is designated by the Financial Stability Board (FSB) as the sole UPI Service Provider to facilitate the creation and distribution of UPIs. The UPI is designed to aid the effective aggregation of OTC derivatives transaction reports on a global basis, facilitating the effective use of OTC trade reporting data, to help authorities assess systemic risk and detect market abuse. Reporting parties are being mandated to incorporate the UPI into their reporting workflows and submit them to trade repositories.
Fulfilling G20 commitments agreed as part of a package of reforms to the OTC derivatives markets made after the financial crisis, mandates to report the UPI have been published in the EU[2], US and Australia[3], with additional jurisdictions to follow. Industry preparations are necessary to meet such pending regulatory requirements and firms are encouraged to take full advantage of the DSB UAT period.
Emma Kalliomaki, Managing Director of ANNA and the DSB, said, “The DSB has undertaken extensive collaboration 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. With firm UPI reporting dates now published, we will continue to support industry with their preparations and UPI implementation.”
Legal documentation, connectivity specifications and UPI Product Templates, as well as a UPI User Guide and FAQ are readily available on the DSB website, please do follow the link: https://www.anna-dsb.com/upi/
[1] https://www.cftc.gov/PressRoom/PressReleases/8659-23
[2] EMIR Refit – https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L:2022:262:TOC
[3] ASIC Derivative Transaction Rules (Reporting) 2024 – https://www.legislation.gov.au/Details/F2022L01706
