About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Derivatives Service Bureau Delays Implementation of Unique Product Identifier

Subscribe to our newsletter

The Derivatives Service Bureau (DSB) has delayed implementation of the Unique Product Identifier (UPI), which was initially due to go live in Q3 2022, but will now be implemented in response to regulatory mandates, the first of which is expected to come from the CFTC in November 2023.

The decision to delay implementation and wait for a regulatory mandate is based on covering the costs of the identifier, although plans are in place, but not yet confirmed, to finalise and publish UPI product templates 15 months ahead of the first regulatory reporting mandate, along with UPI technical specifications for API connectivity.

A user acceptance and integration testing environment, as well as user onboarding, are expected to go live nine months ahead of the first regulatory reporting mandate, with a UPI production system available and able to create, search and report live UPIs three months ahead of a regulatory mandate. This, says the DSB, should allow users plenty of time for testing and getting the UPI into production on time to meet a mandate.

“UPI implementation is on track and waiting for an official mandate,” says Emma Kalliomaki, managing director of the Association of National Numbering Agencies (ANNA) and the DSB. “The CFTC is expected to provide a 12-month notice period towards the end of 2022 and mandate use of the UPI in November 2023.

“The EU and UK are a waiting game, although they have indicated an 18 month lead time, suggesting the US will lead on implementation, followed by the EU and UK. Regulatory authorities in Australia and Japan are indicating a similar timeframe.”

The UPI is designed to facilitate effective aggregation of OTC derivatives transaction reports on a global basis. In the first instance, it will be used to uniquely identify the product involved in an OTC derivatives transaction that an authority requires, or may require in the future, to be reported to a trade repository. Longer term, the UPI will work in conjunction with Unique Transaction Identifiers (UTIs) and Critical Data Elements (CDE) that are also expected to be reportable to global regulatory authorities.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Transforming Data Experiences in Quantitative Research and Trading

For quantitative researchers and quant trading teams at banking and capital markets firms, the ability to access, integrate, and share data is critical. Data and how teams collaborate with data underpins the ability to generate alpha, perform execution analyses, and provide a modern and differentiated client experience. However, for most banks, legacy technology stacks and...

BLOG

Optimising ISO 20022 for Cross-Border Payments

Why the LEI and BIC are a Perfect Fit for a Truly Global Identification Scheme By Clare Rowley, Head of Business Operations, GLEIF. Challenges in the cross-border payments market include high costs, low speed, limited access, and insufficient transparency. In October 2020, the G20 endorsed a roadmap to enhance cross-border payments. The roadmap was developed...

EVENT

A-Team Briefing: Cloud Innovation for Data Ops

This Innovation Briefing will explore approaches to data infrastructure transformation, technologies required and how to make sure processes are optimised to support real time data management. Hear from leading practitioners and innovative technology solution providers who will share insight into how to set up and leverage your data infrastructure to provide user access to consistent data and analytics, and companies the ability to monetise their data.

GUIDE

ESG Handbook 2023

The ESG Handbook 2023 edition is the essential guide to everything you need to know about ESG and how to manage requirements if you work in financial data and technology. Download your free copy to understand: What ESG Covers: The scope and definition of ESG Regulations: The evolution of global regulations, especially in the UK...