The Derivatives Service Bureau (DSB), the global golden source of reference data for Over the Counter (OTC) derivatives, today announces the launch of its Unique Product Identifier (UPI) Service User Acceptance Test (UAT) environment and associated Client Onboarding Support Platform (COSP).

The DSB has been designated by the Financial Stability Board (FSB) as the sole service provider for the Unique Product Identifier (UPI) System, performing the function of issuer of UPI codes as well as operator of the UPI reference data library. The UPI will aid the effective aggregation of OTC derivatives transaction reports on a global basis, facilitating the effective use of OTC trade reporting data and helping authorities assess systemic risk and detect market abuse. Under jurisdictional regulations, reporting parties must incorporate the UPI into their reporting workflows and submit them to trade repositories. 

Following the publication of UPI regulatory mandates in the major derivatives markets, being amendments to the US Recordkeeping and Swap Data Reporting, EU EMIR REFIT and UK EMIR, the DSB has made the UPI Service UAT environment available to aid industry readiness and implementation. The nine month UAT period before the first compliance date will allow prospective UPI users valuable time to implement and test their UPI connectivity, data integration and workflows in advance of compliance dates. The DSB will subsequently launch the UPI Service into production on 16 October 2023, three months before the first regulatory compliance date.

The DSB also launches its Client Onboarding and Support Platform (COSP) today. The COSP is an online, self-service platform which will guide users through the DSB’s UPI Service onboarding process.  Users can create a user entity profile to manage UPI subscription and connectivity options for access to search for and/or create UPIs. As part of this process, the DSB has redesigned the website to enable market participants to easily access the information needed for utilising both the OTC ISIN and UPI Services. Publication of Indicative UPI User Fees are also available from today, to enable firms to address budgetary planning requirements, in advance of the final UPI User Fees being published on 4 September 2023. Full details are available in the UPI Fee Model Final Report – Update 2023. 

Emma Kalliomaki, Managing Director of ANNA and the DSB, said, “The DSB is proud to launch the UPI UAT Service as scheduled to help all stakeholders with preparations for the upcoming regulatory requirements. Thanks go to our dedicated team who have made this key service available for testing more than nine months before the first compliance dates come into force. We now encourage stakeholders to onboard with the DSB and maximise the testing time available.”

Fulfilling G20 commitments agreed as part of a package of reforms to the OTC derivatives markets made after the financial crisis, mandates to report the UPI have been published in the EU, UK, US and Australia, with additional jurisdictions to follow. Industry preparations are necessary to meet such pending regulatory requirements and firms are encouraged to take full advantage of the DSB UAT period.