The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

DSB Publishes UPI Implementation Timeline, Lists Products Requiring Identifier, Opens Second Fee Model Consultation

The Derivatives Service Bureau (DSB) has taken three more significant steps towards go live of the Unique Product Identifier (UPI) service in July 2022 with the publication of a draft implementation timeline, an initial list of products that will require UPIs and a second UPI fee model industry consultation focusing on the timeline and encouraging industry to share its views on UPI services and costs.

The UPI is designed to facilitate effective aggregation of OTC derivatives transaction reports on a global basis and will be used in all jurisdictions where OTC derivatives are reported to trade repositories.

The timeline has been published on the UPI section of the DSB website and sets out when both draft and final documentation will be made available to support industry implementation of the UPI, as well as information on when the final product documentation, templates, and rules of engagement for programmatic users will be published.

The initial list of products that will carry the identifiers, and for which the DSB already generates ISINs and CFI codes, includes rates, credit, equity, foreign exchange, commodities and multi-asset products. The DSB is also discussing other products that may require UPIs, such as exotic products, that are not currently supported by the OTC ISIN service.

A second UPI fee model industry consultation opened on 10 May 2021 and will close on 9 July 2021, before publication of a final report on 27 September 2021.

Emma Kalliomaki, managing director of ANNA and the DSB, says: “We are running the second UPI consultation in parallel with the RFI process to identify a reference data provider for provision of underlier identifiers for the UPI. We are working hard to ensure that best practice and good governance principles are enshrined in the UPI service, so that both industry and regulators will have the most efficient UPI from July 2022.”

A key principle of the UPI is to align it with the ISIN and CFI. Although each identifier serves a different regulatory purpose, the alignment will allow firms to generate each identifier on a standalone basis or automatically ingest a record containing whichever identifiers are needed. Malavika Solanki, a member of the DSB management team, says: “We have done the mapping for you to simplify processes and improve regulatory reporting.”

The UPI will also work in tandem with critical data elements, the former identifying a product transaction and the latter details of the transaction. Solanki says: “The focus now is on clearly defining data elements that are replicable worldwide.”

She explains: “This is a global story. Whether jurisdictions are ready to go or are still in consultation, the aim of the UPI is to harmonise how data is reported to trade repositories and how regulators can use it to monitor risk and market abuse. The UPI will be a consistent identifier across many jurisdictions. It will start to provide consistent data and give regulators a consistent view of what is happening in systems and how they compare.”

Market participants that must report UPIs are also beginning to look at the potential of the identifier longer term, and are discussing how the UPI could be integrated in both regulatory reporting and business processes.

Related content


Recorded Webinar: Managing the transaction reporting landscape post Brexit: MiFID II, SFTR, EMIR

The transaction reporting landscape has, for many financial institutions, expanded considerably in size since the end of the UK’s Brexit transition period on 31 December 2020 and the resulting need for double reporting of some transactions to both EU and UK authorities. It has also changed dramatically following the UK government’s failure to reach equivalence...


S&P Global Acquisition of IHS Markit Creates Financial Data and Analytics Powerhouse

S&P Global’s $44 billion acquisition of IHS Markit will create a financial data and analytics powerhouse capable of challenging Bloomberg’s market leading $11 billion revenue and towering over the proposed $27 billion acquisition of Refintiv by the London Stock Exchange (LSE). The combined company will benefit from increased scale, a wider product portfolio and a...


Data Management Summit Virtual

The Data Management Summit Virtual will bring together the global data management community to share lessons learned, best practice guidance and latest innovations to emerge from the recent crisis. Join us online to hear from leading data practitioners and innovators from the UK, US and Europe who will share insights into how they are pushing the boundaries with data to deliver value with flexible but resilient data driven strategies.


Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...