The Derivatives Service Bureau (DSB) announced the opening of a consultation on the legal terms and conditions and client support model expected to apply to users of the Unique Product Identifier (UPI) Service, due to launch next year. The consultation sets out the proposals for users of the UPI Service as well as highlighting the resulting user experience for firms using the current OTC ISIN Service.
The DSB, was founded by the Association of National Numbering Agencies (ANNA), to facilitate the allocation and maintenance of ISINs, CFIs and FISNs for OTC derivatives, and was subsequently mandated by the Financial Stability Board as the sole UPI Service Provider to facilitate creation and distribution of UPIs globally.
The UPI is designed to facilitate effective aggregation of over-the-counter (OTC) derivatives transaction reports on a global basis. Reporting parties will be mandated to incorporate the UPI into their workflows and submit these to trade repositories once mandates come into effect in each of Africa, Asia, Australia, Europe and the Americas.
The DSB UPI Legal Terms and Conditions Consultation sets out a range of proposals aimed to align with industry feedback for the DSB to support the UPI Service within the existing DSB legal framework that is used for the OTC ISIN Service. Proposals include the use of a single overarching legal agreement with fee-paying users able to subscribe to OTC ISIN and/or UPI Services, introduction of a Client Onboarding and Support Platform (COSP), use of the Legal Entity Identifier (LEI) for user onboarding verification, use of pre-payment for lower value user fees, the fee model variables to be used for annual fee determination, the approach to termination, suspension and renewals, dispute resolution mechanism and the transfer of user data in the case of a contingency scenario, amongst others.
Emma Kalliomaki, managing director of ANNA and the DSB, said in a statement: “The DSB is an industry led utility, producing standardized OTC data for an evolving market. Good governance principles are at the core of the UPI, to ensure for a better service for the market.”