The results of the Derivatives Service Bureau’s (DSB) first industry consultation in 2019 show users of the bureau moving on from initial implementation issues around the DSB ISIN allocation and maintenance service, and expressing growing interest in efficiency and gaining added value from the service.
The consultation, now in its third year, closed on June 5, 2019 and sought answers to questions about the DSB’s services and functionality from both direct and indirect users. Of 24 user driven questions put forward to the industry, six were dismissed as not being of interest, seven will be taken forward by the DSB on a business as usual (BAU) basis with no impact on costs, and 11 require further industry feedback and investigation. These 11 questions will be included in a second consultation that will end on July 29, 2019, and inform DSB service provision for 2020.
Malavika Solanki, a member of the DSB management team, says BAU initiatives include expanding the underlying data sources used by the DSB to include data such as reference rates, equity indices and commodity indices, and focusing on specific aspects of the service as part of the DSB’s ongoing data review activity.
Issues requiring feedback in the second consultation include provision of mapping between DSB templates and MiFID II RTS 2 taxonomy. Templates were originally designed to facilitate reference data reporting under MiFID II RTS 23. Solanki says: “If it is decided to go ahead with this mapping, users would have a more systematic and consistent understanding of how each template and ISIN map to MiFID II RTS 2 classifications. If this is done well, it could provide a standard agreement on how users want to look at these classifications.”
Also on the table for potential DSB development is leveraging the ISIN-LEI mapping service to use the LEI and other supplemental data to drive data validation at the point when a product template is created. A focus on cybersecurity is also on the list.
Issues highlighted by the industry in the second consultation will be published in a final report on August 19, 2019, and then put to the DSB’s product committee and technical advisory committee for further consideration and prioritisation.