The Derivatives Service Bureau (DSB), a global source of reference data for over-the-counter (OTC) derivatives, has launched the Unique Product Identifier (UPI) Service, enabling firms to create and search for UPIs and prepare the market ahead of 2024 regulatory updates.
The UPI, an International Organisation of Standardisation standard (ISO 4914 UPI), has been developed to enable aggregation of OTC derivatives transactions reported to trade repositories so that authorities can monitor the build-up of systemic risk at a global level. The DSB has been designated by the Financial Stability Board (FSB) as the sole UPI Service Provider to support the creation and distribution of UPIs globally.
UPI reporting starts in major derivatives markets in 2024, with the US rules applying from 29 January 2024, the EU EMIR ~Refit regulations from 29 April 2024, followed by UK EMIR Refit from 30 September 2024. Australia and Singapore have announced that UPI reporting will commence in October 2024, and the compliance start date proposed for Japan is April 2025. More G20 jurisdictions are expected to announce their UPI rules in the coming months. Users of the UPI Service can create UPIs for all products from 16 October 2023.
Emma Kalliomaki, managing director of ANNA and the DSB, said, “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 complement user creation of UPIs, the DSB will start a pre-population process, assigning a UPI to each existing OTC International Securities Identification Number (ISIN) record, which will be completed in advance of 29 January 2024, the start of the US reporting requirement.
The DSB has built a self-service Client Onboarding and Support Platform (COSP), that enables users to subscribe to the UPI Service and guides them through the onboarding process. Via the COSP, users can manage connectivity to both the UPI test and live environments, sign the UPI subscription form, provide billing details, complete API certification (where relevant) and raise support tickets.
The DSB said it encourages users to utilise the UPI Service as early as possible to ensure readiness for the start of UPI reporting requirements.
© Markets Media Europe 2023
