The Derivatives Service Bureau (DSB) has announced that its unique product identifier (UPI) user acceptance test (UAT) environment will be available from 17 April 2023.
The affirmation of the launch date follows the publication of the Commodity Futures Trading Commission (CFTC) Designation Order, which confirms the UPI will be required for recordkeeping and swap data reporting in the US from 29 January 2024.
From that date, reporting parties will be mandated to incorporate the UPI into their reporting workflows and submit them to trade repositories.
UPIs facilitate the effective use of over-the-counter (OTC) trade reporting data to help authorities assess systemic risk and detect market abuse.
The DSB is designated by the Financial Stability Board as the sole UPI service provider to facilitate the creation and distribution of UPIs.
Upon the launch of the DSB UPI Service in UAT, the DSB’s Client Onboarding and Support Platform (COSP) will also become available. The COSP is a self-service platform enabling users to onboard the UPI Service and manage their UPI user access and connectivity requirements.
In addition, the DSB’s UPI Production will be available from 16 October 2023, three months prior to the US’ regulatory deadline.
Industry preparations are necessary to meet such pending regulatory requirements and firms are encouraged to take full advantage of the DSB UAT period, says the DSB.
Mandates to report the UPI have been published in the EU, US and Australia, with additional jurisdictions to follow. The initiative fulfills a package of G20 OTC derivative reforms put into motion post-financial crisis.
Emma Kalliomaki, managing director of ANNA and the DSB, says: “The DSB has undertaken extensive collaboration with stakeholders to ensure the UPI Service is fit-for-purpose and the objectives of the service align with the DSB principles. With firm UPI reporting dates now published, we will continue to support the industry with their preparations and UPI implementation.”
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