The Derivatives Service Bureau (DSB) opened a first round of industry consultation on fee principles for the Unique Product Identifier (UPI) today. The consultation ends on 5 March 2021 and is the first of two consultations before a final report is published in September 2021.
The UPI will come into play in 2022 and will require all firms reporting to trade repositories to include the identifier in their workflows. With such a broad reach, the DSB is urging market participants reporting to trade repositories anywhere in the world to take part in the consultation, which will consider topics including expectations around UPI adoption and the estimated number of users, the types of users, the use of workflows, cost allocation processes, duration of initial user agreements, and a proposed invoicing methodology.
Emma Kalliomaki, managing director of ANNA and the DSB, comments: “UPIs will have a global footprint, so we are looking to obtain the broadest range of views in response to our consultation process. Although the service is not being introduced until 2022, now is the time for industry to get involved in the preparations so that we cater for the widest range of interests when shaping the UPI service for stakeholders.”
The DSB was named in 2019 by the Financial Stability Board (FSB) as the sole service provider for the UPI system, performing the function of issuer of UPIs as well as operator of the UPI reference data library.