The Derivatives Service Bureau reports results from second 2019 industry consultation
Consultation reveals significant appetite for further data and cybersecurity analysis
London, 19th August 2019 – The Derivatives Service Bureau (DSB), founded by the Association of National Numbering Agencies (ANNA) to facilitate the allocation and maintenance of International Securities Identification Numbers (ISINs), Classification of Financial Instrument codes (CFIs) and Financial Instrument Short Names (FISNs), for OTC derivatives, has today announced the results of their second 2019 industry consultation, revealing a significant appetite for further analysis on functionality that may be helpful in delivering improved data quality, standardization and automation as well as further strengthening the DSB’s cybersecurity processes and governance.
The second consultation closed on the 29th July with 9 responses representing 12 institutions, four of which were from trade associations. Industry concurred with 80% of proposals set out in the second consultation paper. Half the proposals are being taken forward for analysis, to allow the industry to better understand the benefits and potential impact.
The industry requested that the DSB undertake further analysis, for example, on leveraging the ISIN-LEI service to provide LEI and other supplemental data to further improve data quality. By placing the LEI mapping table in the product-mapping template the data enables anyone consuming the ISIN record to have easier access to LEI mapping. This, in turn, offers the potential to improve downstream processing. The DSB will be conducting this cost-benefit analysis on a business as usual basis, with no cost impact to users.
Another industry request for more analysis, resulting from the DSB’s 2nd Consultation, was for the DSB to look at the CFI code coverage it provides today and whether and how it needs to be taken forward for implementation as well. Evaluation will also be undertaken by the DSB to ascertain whether and by how much the annual fee determination process can be brought forward in 2020. Following industry feedback, an industry Agreement Forum will also be formed to commence work in relation to multiple or group-wide agreements with the aim for recommendations to be included in the annual industry consultation in 2020.
Emma Kalliomaki, Managing Director of ANNA and the DSB, said, “Collaboration is a cornerstone of our evolution at the DSB, and the enhancements and the further analysis being undertaken, driven by user feedback, focus on data quality and standardisation which is so important for all users. At its core, the DSB is focused on delivering the ISO obligations and principles to fulfil the industry needs for ISO standards while being as cost-effective, transparent and efficient as possible, to both help firms further their operational efficiency and manage risk for global markets.”
Malavika Solanki, a member of the DSB Management Team, said, “Industry ideas have driven this process, and we are pleased with the partnership-driven approach that is emerging. As we continue to adopt user sourced initiatives, we are increasingly focusing on aiding consistent use of data contained within the OTC ISIN record. We have also observed an evolution from use of OTC ISIN for RTS 23 purposes to improve integration in users’ infrastructures, as the industry realises the benefits of using OTC ISIN records in their own workflow processes.”
In line with the DSB’s critical market infrastructure role, the consultation also highlighted industry appetite for the adoption of international best practice on cyber-security governance. The DSB is, therefore, creating the role of a Chief Information Security Officer (CISO) in the short-term, who will be tasked with strengthening the DSB’s cyber-security processes. The DSB will review this part-time role in 2020 to determine the most effective way to enhance cyber-security governance in the medium term.
In conjunction with releasing the consultation report, the DSB has also published the draft 2020 DSB Access and Usage Agreement and associated policies, giving visibility over the proposed changes and an opportunity to comment. Deadline for feedback is 2nd September 2019 with a final version being published 20th September 2019.
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ENDS
Media contact for ANNA
Lindsay Clarke
Streets Consulting
+44 (0)20 7959 2235
lindsay.clarke@streetsconsulting.com
The Derivatives Service Bureau (DSB) Ltd
The Derivatives Service Bureau is a global numbering agency for OTC derivatives serving the needs of market participants through the allocation of International Securities Identification Numbers (ISINs), the Classification of Financial Instruments (CFI) and Financial Instrument Short Name (FISN), all globally recognised and adopted ISO standards for identifying, classifying and describing financial instruments. With an underlying technology platform that is built to support multiple taxonomies of definitions and descriptive data, as well as numbering in near-real-time, the DSB is motivated to bring greater transparency and integration within the OTC derivatives market, enabling institutional investors to standardise data and better control operational risk. Users can access the DSB through a web interface, by accessing data in daily update files or by direct integration to front-office systems for trading and order management.
The DSB is a legal subsidiary of the Association of National Numbering Agencies (ANNA). With widespread industry representation, expertise and collaboration at its core, the DSB’s history, pedigree and expertise are rooted in ANNA, with its broad experience and overview of handling both on and off-exchange ISINs for all asset classes. If you would like to use the Derivatives Service Bureau please visit the DSB website
About ANNA
The Association of National Numbering Agencies (ANNA) is a global member association seeking to foster standardisation within the financial industry by upholding the International Organization for Standardization (ISO) principles and by promoting ISIN, FISN and CFI codes for financial instruments. This is achieved through ongoing, collaborative work with market participants, regulators and other standards bodies.
Under ANNA’s stewardship, the role of the ISIN in enabling global financial communications has been established worldwide. Founded in 1992 by 22 numbering agencies, today ANNA’s membership continues to grow, with more than 120 global members and partners allocating ISIN, FISN and CFI codes on behalf of their local jurisdictions. By putting in place rigorous governance around the development, allocation and sharing of ISIN, FISN and CFI codes, ANNA helps facilitate open, transparent markets diminishing barriers to access, while protecting the integrity of the standards. As a result, ISIN has become the recognised global standard for unique identification for all types of financial and referential instruments, helping to connect and protect global markets.
In addition, ANNA has established the Derivatives Service Bureau (DSB), a fully automated global numbering agency to meet the specific operational and regulatory requirements of the over-the-counter derivatives markets.
For information about ANNA, its members and activities, please visit anna-web.org.
