DSB Launches Swaps Identifier Service

The Derivatives Service Bureau (DSB) has launched the Unique Product Identifier (UPI) service for OTC derivatives, enabling firms to create and search for UPIs, a standard that has been developed to enable aggregation of OTC derivatives transactions reported to trade repositories.

The DSB says the service allows authorities to monitor the build-up of systemic risk at a global level – it is 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 the 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 and the DSB says it encourages users to utilise the UPI Service as early as possible to ensure readiness for the start of UPI reporting requirements.

Users can create UPIs for all products from the 16 October 2023. In addition, to complement user creation of UPIs, the DSB says it 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.

For user onboarding, the DSB has developed 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.

“This is a major milestone following long-term collaboration among authorities, industry and the DSB,” says Emma Kalliomaki, managing director of ANNA 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.”