16 July 2018

FSB invites responses from prospective UPI service providers

The primary purpose of the UPI is to identify the product that is the subject of an OTC derivatives transaction. The FSB has been working closely with the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) in the development of UPI arrangements.

The CPMI and IOSCO published their finalised technical guidance on the UPI in September 2017. Under the technical guidance, a unique UPI code would be assigned to each distinct OTC derivative product and would map to reference data elements with specific values that together describe the product. To use the data from trade reporting effectively, it is important for authorities to be able to aggregate reporting not only to consider institution-specific risks but also to consider system-wide risks.

The FSB has issued two consultation documents on aspects of the governance arrangements for the UPI and intends to designate one or more UPI Service Provider(s) to assign UPIs and maintain a corresponding UPI reference data library to facilitate the unique assignment of a UPI code to each OTC derivatives product. In response to the FSB’s consultations, several commenters have recommended that the UPI Governance Arrangements should entail a public-private partnership. The FSB agrees that private sector participation in the governance of the UPI System is desirable, but also that it is key that Authorities maintain their oversight function.

Each prospective UPI Service Provider (Respondent) is asked (by answering specific questions or selectively providing additional documents) to present a business and self-governance plan that explains how the Respondent would:

• meet the key governance criteria and provide for the relevant governance functions; and
• meet the Technical Guidance.

Responses are requested by Tuesday 4 September 2018.

Press release

Questionnaire

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