The Financial Stability Board (FSB) has published a questionnaire for prospective UPI Service Providers and is seeking responses from entities that wish to be designated by the FSB as a Service Provider for the Unique Product Identifier (UPI). The primary purpose of the UPI is to identify the product that is the subject of an OTC derivatives transaction. The FSB has been working closely with the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) in the development of UPI arrangements.
G20 Leaders agreed at the Pittsburgh Summit in 2009, as part of a package of reforms to the over-the-counter (OTC) derivatives markets, that all OTC derivatives transactions should be reported to trade repositories. A lack of transparency in these markets was one of the key problems identified by the financial crisis. Trade reporting, by providing authorities with data on trading activity, will help authorities to identify and address financial stability risks from these markets.