Self-assessment questionnaire for prospective UPI Service Providers
This questionnaire template and accompanying explanatory note provide a Self-assessment questionnaire for prospective Unique Product Identifier Service Providers.
G20 Leaders agreed at the Pittsburgh Summit in 2009, as part of a package of reforms to the over-the-counter (OTC) derivatives markets, that all OTC derivatives transactions should be reported to trade repositories. A lack of transparency in these markets was one of the key problems identified by the financial crisis. Trade reporting, by providing authorities with data on trading activity, is a key part of efforts to identify and address financial stability risks from these markets.
The primary purpose of the UPI is to identify the product that is the subject of an OTC derivatives transaction. The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (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 UPI technical guidance contemplates the existence of one or more UPI Service Providers 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.
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). 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.
The FSB invites prospective UPI Service Providers to complete the self-assessment and provide their responses by Tuesday 4 September 2018 by e-mail to [email protected] with “Designation of UPI Service Provider(s)” in the e-mail subject line.