Sibos, the annual technology conference, takes place this week online and with the theme of ‘Recharging Global Finance’. Though centred mainly on banking, Sibos – which is organised by the banking cooperative Swift – also considers developments relevant to the funds industry and so we asked a number of professional some Sibos-linked questions. Here is Emma Kalliomaki, managing director, derivatives service bureau.
What is the unique product identifier (UPI) designed to do?
The UPI is designed to facilitate effective aggregation of over-the-counter (OTC) derivative transactions reported to trade repositories on a global basis. The UPI will assist authorities assess systemic risk and has been developed as an international standard (ISO 4914).
What are the reporting requirements?
The Financial Stability Board recommended that jurisdictions make the necessary changes to their supervisory frameworks to cater for UPI implementation by no later than Q3 2022. The Derivatives Service Bureau will be launching the UPI service in July 2022. The specific reporting requirements and timelines will depend on each jurisdiction. There are some examples of UPI regulatory adoption progress – CFTC 2.0 with respect to swap data reporting and Esma [European Securities and Markets Authority] draft technical standards for EMIR Refit as well as consultations in Australia, Singapore and the UK.
Is this something that affects asset managers, asset owners and other institutional investors?
All firms with an obligation to report OTC derivative transactions to trade repositories will need to implement the UPI to meet regulatory reporting requirements. Firms will need to determine whether they need to create or only consume UPI data.
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