Securities Financing Industry News | Derivatives Service Bureau opens a consultation concerning the conditions of the UPI service


Derivatives Service Bureau opens a consultation concerning the conditions of the UPI service

The Derivatives Service Bureau (DSB) has opened a consultation on the legal terms and conditions that should apply to users of the Unique Product Identifier (UPI) service, which is slated to launch next year.

The DSB consultation outlines the proposals for users of the UPI service and highlights the resulting user experience for companies using the current over-the-counter (ISIN) International Securities Identification Number (ISIN) service ( OTC).

The UPI is designed to facilitate the efficient aggregation of OTC derivative transaction reports on a global basis. Reporting parties will be responsible for integrating the UPI into their workflows and submitting them to trade repositories once the mandates go into effect in Africa, Asia, Australia, Europe and the Americas.

The DSB UPI Legal Terms consultation presents a set of proposals to align with industry feedback for the DSB to support the UPI service within the existing DSB legal framework.

The proposals include the use of a single global legal agreement with paying users capable of subscribing to OTC ISIN and UPI services, the introduction of a customer integration and support platform, the use of the legal entity identifier for verification of user integration as well as the use of prepayment of lower value user fees.

Other suggestions include the pricing model variables to be used in determining the annual fee, the approach to termination, suspension and renewals, the dispute resolution mechanism, and the transfer of user data in the event of a loss. ‘an emergency scenario, among others.

The DSB recommends that current and potential users of the UPI service consider and respond to the questions set out in the consultation document.

The DSB webinars will take place on November 9-10, where an overview of the consultation will be provided. The deadline for industry comments is January 19, 2022.

The DSB was founded by the Association of National Numbering Agencies (ANNA) to facilitate the allocation and maintenance of ISINs for OTC derivatives, and was subsequently commissioned by the Financial Stability Board as the sole provider of UPI services to facilitate the creation and distribution of UPIs around the world. .

Emma Kalliomaki, Managing Director of ANNA and DSB, says: “DSB is an industry-led public service, producing standardized OTC data for a changing market. The principles of good governance are at the heart of the UPI to ensure better service to the market. The DSB wishes to encourage all interested parties to consider the proposals in the consultation on the legal conditions of the IPU and to provide their comments by January 19, 2022, when the comment window closes. “

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