The Derivatives Service Bureau (DSB) has announced the publication of the UPI Legal Terms and Conditions Consultation Final Report and draft user legal documentation.
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 Africa, Asia-Pacific, Europe and the Americas.
The Final Report focuses on summarizing industry feedback received on the consultation paper on the DSB legal terms and conditions and confirms the legal provisions and associated mechanisms to be taken forward with respect to DSB legal documentation. The existing DSB legal framework for OTC ISIN, which is subject to annual industry consultation, has been leveraged with proposed revisions being largely structural and process related to ensure that they are fit-for-purpose for both the OTC ISIN and UPI Services such that there is a common agreement.
Stakeholder feedback to the consultation has been considered in the drafting of the revised legal documentation covering a range of topics such as introduction of a UPI 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 continues to collaborate 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. The DSB encourages all interested parties to review the draft legal documentation and send any feedback over the coming months.”