Derivatives Service Bureau to release its UPI testing framework from April 2023
23 February 2023 US
Image: AdobeStock/Eucalyp
The Derivatives Service Bureau (DSB) has confirmed a release date for its UPI service to support the mandatory inclusion of a Unique Product Identifier for swap transaction reporting in the US.
The DSB, which brands itself as the golden source of reference data globally for OTC derivatives, will be making its Unique Product Identifier (UPI) user acceptance testing (UAT) framework available to users from 17 April 2023.
The DSB’s UPI Production environment will be extended to users from 16 October 2023, providing a three-month window to ensure readiness prior to this UPI change being enforced.
The DSB will also release its Client Onboarding and Support Platform (COSP) with the release of the UPI service. This is a self-service online platform designed to help users to onboard to the UPI service and to manage UPI user access and connectivity.
Last week, the Commodity Futures Trading Commission (CFTC) released an order mandating that a UPI and product classification system must be employed in swaps trade reporting and record keeping in the US from 29 January 2024.
This will be applicable, in the first instance, for interest rate, credit, equity and forex swap trade reporting.
The CFTC hopes that the use of UPIs will increase transparency in the swaps market, facilitating real-time public reporting of swap transaction and pricing data and helping the Commission to provide effective oversight of this derivatives marketplace.
According to CFTC director of the Division of Market Oversight Vince McGonagle: “The order represents another important milestone in the Commission’s long running efforts to harmonise and standardise the swaps data elements required to be reported under the Commission’s regulations with those required to be reported by authorities in other jurisdictions.”
The Financial Stability Board has marked the DSB as the single UPI Service Provider responsible for generation and distribution of UPIs.
UPI is designed to facilitate effective aggregation of OTC derivatives trade reports on a global basis. The UPI will work in conjunction with Unique Transaction Identifiers (UTIs) and Critical Data Elements (CDE) as key transaction data that swaps trading entities must report to a trade repository.
This forms part of G20 commitments, representing a package of reforms to OTC derivatives markets implemented after 2008. The requirement to include the UPI in swap data reporting and derivatives recordkeeping has been enforced in the EU, the US and Australia, with other markets likely to be added shortly.
Legal documentation, UPI product templates and connectivity specifications are available on the DSB website, along with a UPI User Guide.
Emma Kalliomaki, managing director of the DSB and the Association of National Numbering Agencies, says: “The DSB has undertaken extensive collaboration 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.
“With firm UPI reporting dates now published, we will continue to support the industry with their preparations and UPI implementation.”
The DSB, which brands itself as the golden source of reference data globally for OTC derivatives, will be making its Unique Product Identifier (UPI) user acceptance testing (UAT) framework available to users from 17 April 2023.
The DSB’s UPI Production environment will be extended to users from 16 October 2023, providing a three-month window to ensure readiness prior to this UPI change being enforced.
The DSB will also release its Client Onboarding and Support Platform (COSP) with the release of the UPI service. This is a self-service online platform designed to help users to onboard to the UPI service and to manage UPI user access and connectivity.
Last week, the Commodity Futures Trading Commission (CFTC) released an order mandating that a UPI and product classification system must be employed in swaps trade reporting and record keeping in the US from 29 January 2024.
This will be applicable, in the first instance, for interest rate, credit, equity and forex swap trade reporting.
The CFTC hopes that the use of UPIs will increase transparency in the swaps market, facilitating real-time public reporting of swap transaction and pricing data and helping the Commission to provide effective oversight of this derivatives marketplace.
According to CFTC director of the Division of Market Oversight Vince McGonagle: “The order represents another important milestone in the Commission’s long running efforts to harmonise and standardise the swaps data elements required to be reported under the Commission’s regulations with those required to be reported by authorities in other jurisdictions.”
The Financial Stability Board has marked the DSB as the single UPI Service Provider responsible for generation and distribution of UPIs.
UPI is designed to facilitate effective aggregation of OTC derivatives trade reports on a global basis. The UPI will work in conjunction with Unique Transaction Identifiers (UTIs) and Critical Data Elements (CDE) as key transaction data that swaps trading entities must report to a trade repository.
This forms part of G20 commitments, representing a package of reforms to OTC derivatives markets implemented after 2008. The requirement to include the UPI in swap data reporting and derivatives recordkeeping has been enforced in the EU, the US and Australia, with other markets likely to be added shortly.
Legal documentation, UPI product templates and connectivity specifications are available on the DSB website, along with a UPI User Guide.
Emma Kalliomaki, managing director of the DSB and the Association of National Numbering Agencies, says: “The DSB has undertaken extensive collaboration 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.
“With firm UPI reporting dates now published, we will continue to support the industry with their preparations and UPI implementation.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
