The Derivatives Service Bureau (DSB), a subsidiary of the Association of National Numbering Agencies (ANNA) designed to issue ISIN identifiers for OTC derivatives under Markets in Financial Instruments Directive II (MiFID II), has opened its user acceptance testing platform to the industry.
The platform provides near real-time allocation of ISINs for OTC derivatives and generates additional attributes mandated by MiFID II, including Classification of Financial Instruments (CFI) codes and Financial Instrument Short Name (FISN) ISO standard values.
The DSB has also started to release provisional product definitions that detail the ISIN attributes expected to go live with the platform on 2 October 2017. The definitions are being loaded onto the user acceptance testing platform in line with this schedule: 3 April, rates; 18 April, credit; 24 April, foreign exchange; 2 May, equity; and 8 May, commodities.
The opening of the user acceptance testing platform should begin to answer industry concerns about the ability of the DSB to issue ISINs for OTC derivatives in a timely and effective manner. The DSB states: “[We are] now shifting focus to hardening the service – adding resiliency, capacity and performance to the system to ensure that production will meet the demands of the global OTC derivatives industry.”
The platform is a significant milestone in development of the DSB, which was discussed recently at A-Team Group’s Data Management Summit in London. At the event, Emma Kalliomaki, managing director of ANNA, and Sassan Danesh, a member of the DSB management team, outlined plans for the bureau including implementation of ISDA taxonomy and an FpML interface for the DSB, finalisation of the ISIN fee model in the second quarter of this year, a second industry consultation on the fee model focussed on redistribution of excess revenue in May, and the publication of a DSB user agreement in July. With ISIN allocation due to go live on 2 October, the DSB team said the fee model will be re-evaluated in October 2018 after one year of production activity.
To register for the user acceptance testing platform email firstname.lastname@example.org with ‘UAT Registration’ in the subject line and receive a brief application form.