Financial Stability Board Consults on Governance Arrangements for the Unique Product Identifier

The Financial Stability Board has launched a consultation on governance arrangements for the unique product identifier. The development of a UPI was identified in September 2014 by the FSB as a critical element for a mechanism to produce and share global aggregated derivatives reporting data, along with the development of a unique transaction identifier and the harmonization of other key data elements. The receipt of aggregated derivatives reporting data will enable national regulators to better assess systemic risk and perform other market oversight functions. In the UPI system envisaged, a unique UPI Code would be assigned to each distinct OTC derivative product and map to a set of reference data elements having specific values that together describe the product. The collection of reference data elements and their values for each product would reside in a corresponding UPI Reference Data Library that would be administered by either one UPI Service Provider or one of a number of UPI Service Providers.

The consultation paper outlines the potential governance functions that the FSB anticipates should be performed (such as ongoing UPI generation and oversight of the UPI System) and key criteria the FSB has preliminarily identified to assess UPI governance arrangements. The consultation also sets out considerations for using one or many UPI Service Providers.

Comments on the consultation are invited by November 17, 2017.

The FSB contemplates that following responses to this consultation, it will further consult with industry stakeholders and undertake additional public consultation. This includes a proposed consultation in early 2018 on proposals for allocating UPI governance functions to various entities and on the UPI services provider model.

The FSB will work in close coordination with the Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions on technical UPI matters.

View the consultation paper.