FSB designated The Derivatives Service Bureau Ltd (DSB) as the service provider for the future Unique Product Identifier (UPI) system. This decision was taken at the FSB meeting on April 26, 2019 in New York. This is a key step toward completing the UPI governance framework. As the sole issuer of the UPI codes, DSB will also perform the function of operator of the UPI reference data library.
DSB will assign UPI code to an over-the-counter (OTC) derivatives product and the code will be used for identifying the product in transaction reporting data. This will enable authorities to aggregate data on OTC derivatives transactions by product or by any UPI reference data element. Such aggregation will facilitate the effective use of OTC trade reporting data, including helping authorities to assess systemic risk and detect market abuse.
FSB also decided that the data standard for UPI code and the UPI reference data elements will be set as international data standards and has identified the International Organization for Standardization (ISO) as the body responsible for publishing and maintaining these standards as international data standards. FSB, through UPI Governance (GUUG), will also engage with DSB and a range of authorities to ensure that DSB is subject to appropriately rigorous oversight arrangements and that its existing governance and consultative systems are adapted to the specific features of the UPI system, as set out in the FSB governance criteria and CPMI and IOSCO technical guidance.
The designation of DSB came after FSB publicly invited prospective UPI service providers in July 2018 to submit self-assessments, based on an assessment process undertaken by the FSB working Group on Unique Transaction Identifier (UTI) and GUUG, with advice from the technical assessment sub-group of the CPMI and IOSCO working group for the harmonization of key OTC derivatives data elements.
Related Link: Press Release
Keywords: International, Banking, OTC Derivatives, Governance Framework, Systemic Risk, DSB, Transaction Reporting, UPI, ISO, FSB
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
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