DSB releases details of industry readiness for UPI Reporting in the EU
UPI Reporting in the EU commences on 29 April 2024
London, Tuesday 9 April 2024 – The Derivatives Service Bureau (DSB), the global golden source of reference data for Over the Counter (OTC) derivatives, today released the latest data on industry readiness for European UPI (Unique Product Identifier) regulatory reporting requirements, which are part of the EU EMIR Refit Regulations.
The European Union will implement UPI reporting from 29 April 2024 as the second G20 jurisdiction, following the US who went live from 29 January 2024, and ahead of the UK effective date in September 2024.
The EU UPI reporting will be complementary to the existing ISIN for OTC derivative reporting, which is important to price transparency and market abuse detection under MiFIR, and for aggregating OTC derivatives data under EMIR. This means that the EU (and the UK) will be reporting the OTC ISIN where the EMIR scope aligns with MiFIR, with the UPI being reportable for those derivatives that are part of the broader scope of EMIR.
Due to the intentionally complementary design of the two identifiers, UPI data attributes and the UPI code itself are included in the OTC ISIN record. Organisations using the OTC ISIN can leverage established workflows and connectivity for integration of the UPI, ensuring global convergence and harmonisation. This is an integral component of the EU’s approach, designed to establish cross-regulation consistency and lower reporting burdens for firms.
Overall, the DSB user onboarding data reveals that European organisations are prepared to meet their UPI regulatory requirements, having seen a steady increase in EU headquartered firms joining the service. Currently, 246 firms have subscribed to the UPI Service across various fee-paying user types, including 122 programmatic users. This represents an increase of over 100 organisations subscribing to the UPI Service since the US compliance date. Among these organisations, Banks constitute the largest entity group at 44%, with other participants such as Trade Execution Platforms- SEF, Clearing Houses, Brokerages, Trade Repositories, and Data Management Providers also onboarded. Approximately 33% of the onboarded organisations have their headquarters based in the EU. Quarterly updates on UPI user numbers are available on the DSB website Fee Model Variables page.
Emma Kalliomaki, Managing Director of ANNA and the DSB, said:
“This second UPI compliance milestone reflects the momentum of G20 jurisdictions fulfilling commitments made after the financial crisis, contributing to the ongoing efforts to enhance global systemic risk monitoring through the aggregation of OTC derivatives data.
We have worked closely with stakeholders to ensure the OTC ISIN design is consistent and complementary with the UPI. As a result, the relationship between the two identifiers is being leveraged for the EU UPI implementation to ease integration and reduce the regulatory reporting burden on firms.”
As UPI reporting deadlines approach, firms can prepare for their reporting obligations by using the DSB’s scalable Client Onboarding and Support Platform. The platform enables timely onboarding to the UPI Service offering a range of efficient connectivity and service options that facilitate seamless access to UPIs across all products.
The UPI Service was launched on 16 October 2023 as a result of ongoing collaborative efforts involving industry stakeholders, global regulatory bodies, and the Derivatives Service Bureau (DSB), which serves as the UPI Service Provider. Since its launch, more than 1 million Unique Product Identifiers (UPIs) have been created and made accessible to users. UPIs are categorised by asset class, with volumes regularly reported.
The next jurisdiction to roll out UPI reporting will be the UK on 30 September 2024, followed by Australia and Singapore from 21 October 2024 and Japan from 7 April 2025. In addition, the Hong Kong authorities, HKMA and SFC, are consulting on the OTC derivatives reporting regime, proposing mandatory UPI reporting from 29 September 2025.
To discuss the upcoming EU UPI reporting mandate, the DSB’s Managing Director, Emma Kalliomaki will be hosting a virtual event with representatives from The European Markets and Securities Authority (ESMA) and the European Central Bank (ECB).
The event will take place on 10 April 2024 at 2pm UTC/ 3pm CET / 4pm EET.
To register please follow the link here.
ENDS
Media contact for The DSB
Carmen Rey
Streets Consulting
carmen.rey@streetsconsulting.com
The Derivatives Service Bureau (DSB) Ltd
The Derivatives Service Bureau, DSB, is the global golden source of reference data for Over the Counter (OTC) derivatives. Serving over 4,000 users spanning approximately 500 institutions, the DSB enables market participants to meet their regulatory reporting obligations to trade repositories, and for post- trade transparency and market abuse reporting related to MiFID II. A global utility with widespread industry representation, expertise and collaboration at its core, the DSB provides its reference data on a cost-recovery basis to increase transparency, efficiencies and interoperability through the use of standards. Users can access the DSB’s automated zero-touch technology platform through an open and easily accessible web interface that can handle multiple taxonomies of definitions and descriptive data for near real-time allocation.
Founded by the Association of National Numbering Agencies, ANNA, the DSB is the sole source of multiple ISO standards for OTC derivatives, including International Securities Identification Numbers (ISINs), Unique Product Identifiers (UPIs), Classification of Financial Instruments Codes (CFIs) and Financial Instrument Short Names (FISNs). In addition to its ISO mandates, the DSB has been nominated by the Financial Stability Board of the G20 to be the exclusive global operator of the UPI Service. This service will enable authorities to aggregate data on OTC derivatives transactions by product or by any UPI reference data element. 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 the website.
