The Derivatives Service Bureau (DSB) has released a Request for Information (RFI) to identify a reference data provider for underlier identifiers for the Unique Product Identifier (UPI). A requirement of the UPI, which the DSB plans to make available in Q3 2022, is to support the use of multiple underlier identifiers and reference data elements.
The DSB has released the RFI today, 29 March, 2021. Clarifications will be sought from interested parties by the 9 April 2021, and the closing deadline is 23 April, 2021. The DSB aims to finalise the selection process by the middle of the year. Details of the RFI are available on request and reference data providers interested in responding can contact the DSB at email@example.com.Emma Kalliomaki, managing director of ANNA and the DSB, says: “The UPI is going to be critical to international markets, allowing regulators to aggregate global data reportable to trade repositories. Having a reliable reference data source for underliers is vitally important.”
Underlier identifiers are important because they are one of the attributes used to define a UPI. At a given point in time, every reportable OTC derivative product should be identified by one distinct set of UPI reference data elements and their values. It is intended that UPI users will be able to submit a range of underlier identifiers, which will map to a single UPI code for any given OTC derivative product. The different identifiers representing the instrument, index, or reference rate for an OTC derivative should therefore be regarded as alternative representations of the underlier for the same UPI. This reference data will be key to underpinning the UPI’s effectiveness.