The Derivatives Service Bureau (DSB) has published its final report on a fee model for the Unique Product Identifier (UPI) that will come into play in July 2022. The report – Principles Underlying the Fee Model for the Unique Product Identifier (UPI) Service – is based on two consultation papers and considers both the UPI fee model and the cost basis of the UPI service.
Key information in the report includes: anticipated user estimates; a description of the functionality to be made available; user types; and invoicing and contractual notes for day one of the service. Services will be tiered, allowing UPI users to connect on a free-to-use or fee-paying basis. The DSB is working on a consistent framework for new services that will allow users needing both UPI and OTC ISIN services to access them easily and effectively.
Emma Kalliomaki, managing director at the DSB, says: “The DSB has undertaken an extensive consultation within our industry, which has widely concurred with DSB proposals and has helped shape the service. We are working hard to ensure that best practice and good governance principles are enshrined in the UPI, so that both industry and regulators will have the most efficient UPI service.”
The UPI is designed to facilitate effective aggregation of over-the-counter (OTC) derivatives transaction reports on a global basis. Reporting parties will be mandated to incorporate the UPI into their workflows and submit these to trade repositories once mandates come into effect in each of Africa, Asia, Australia, Europe and the Americas.
The DSB will launch a further industry consultation on UPI legal terms and conditions on 2 November, 2021.