Unique Product Identifier (UPI) ballot opened for TC 68/SC 8 voting

Unique Product Identifier (UPI) ballot opened for TC 68/SC 8 voting

By SC 8


ISO/CD 4914 ballot on the Unique Product Identifier (UPI) was opened on September 26, 2020 until November 21, 2020 for TC 68/SC 8 member voting.  Following the SC 8 balloting and disposition of any comments, a DIS ballot will be released to the full ISO community.  Read more below....

The G20 Leaders agreed in 2009 that over-the-counter (OTC) derivatives contracts should be reported to trade repositories as part of their commitment to reform OTC derivatives markets in order to improve transparency, mitigate systemic risk and protect against market abuse. Aggregation of the data reported across trade repositories can enable authorities to obtain a comprehensive view of OTC derivatives market and activity; standardization and harmonization of identifiers and data elements is crucial for global data aggregation.


In addition to the recently published ISO 23897 standard for Unique Transaction Identifier (UTI), the motivation behind the Unique Product Identifier (UPI) is to uniquely identify OTC derivative products, as defined by a specific set of reference data elements, for the purpose of regulatory reporting to trade repositories.  Whilst the primary drivers of the UPI are regulatory reporting, the UPI could also serve other purposes other than regulatory reporting, such as pre- and post-trade processes performed by market participants and financial market infrastructures.


This International Standard provides the framework allowing for a unique UPI Code to be assigned to each distinct OTC derivative product that is reportable to trade repositories.   The standard defines the UPI code structure and the set of reference data elements having specific values that will describe the product. The issuance of UPIs and the collection of codes and reference data elements for each product will be maintained by the UPI service provider; specifically, the Derivatives Service Bureau (DSB).  The DSB was announced by the Financial Stability Board (FSB) to be the UPI service provider in May 2019: https://www.fsb.org/2019/05/fsb-designates-dsb-as-unique-product-identifier-upi-service-provider/.


The FSB also just announced that the LEI Regulatory Oversight Committee will become the International Governance Body for OTC derivatives identifiers (LEI, UPI and UTI and Critical Data Elements) https://www.fsb.org/2020/09/lei-roc-to-become-governance-body-for-otc-derivatives-identifiers/.