DSB Launches Consultation on Fee Structure for UPI

Market participants are invited to provide feedback on the assumptions and proposals that will underpin the fee model for the UPI.

The DSB (Derivatives Service Bureau) has launched its first consultation on the fee model principles underpinning the UPI (Unique Product Identifier) service.

The DSB is a global numbering agency founded by ANNA (Association of National Numbering Agencies) to facilitate the allocation and maintenance of ISINs, CFIs and FISNs for OTC derivatives.

Last May, the FSB (Financial Stability Board) designated the DSB as the sole service provider of the future UPI system, functioning as the issuer of UPIs and the operator of the UPI reference data library.

The UPI will be required in jurisdictions with mandatory reporting for OTC derivatives – including Australia, Japan, Hong Kong and Singapore – from late 2022 onwards to ensure that products are reported to trade repositories consistently across FSB jurisdictions.

The DSB plans to introduce its UPI service in 2022.

“The outcome of the consultation will be fundamental to laying the groundwork for how the UPI service and its fee model will be structured once it goes live,” the DSB says.

“The consultation process will also help shape how to set fees, who they are applicable to, and the related functionality for the variety of anticipated UPI users.”

Market participants that will need to access, integrate, create, and consume UPI data are asked to review and respond to the consultation, so that these views can be reflected in the new service.

The consultation examines the expectations around UPI adoption, the estimated number of users, the types of users, the use of workflows, cost allocation processes, the duration of the initial user agreements, and the proposed invoicing methodology, among other topics.

The DSB is working closely with industry participants in its Product Committee and Technology Advisory Committee, as well as with global regulatory authorities, to ensure that the UPI service “meets the needs of all stakeholders”.

The consultation, available here, is open for comment until 5 March 2021.

The DSB will also host explanatory webinars in February in which participants can pose questions relevant to the consultation paper.

Two other consultations will be launched in May and September 2021.

 

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