Addressing the need for regulatory reporting obligations under MiFID II
The Derivatives Service Bureau launched its real-time International Securities Identification Number (ISIN) creation service today and users can now create OTC derivative ISINs and obtain associated reference data to address regulatory reporting obligations and processing requirements.
A year after the initial announcement of the core functionality of the first automated global ISIN-allocation engine, the DSB has met its commitment to be in full production on this date. The first users are being onboarded for creation of ISINs for OTC derivatives, resulting in the beginning of a global OTC ISIN data archive, which will also contain Classification of Financial Instruments (CFIs), Financial Instrument Short Name (FISNs) and associated reference data. Inclusion of ToTV (Traded on a Trading Venue) flagging will begin UAT testing on 20 November and move into production in the latter half of December 2017.
“The successful launch into production illustrates the effective collaboration between industry and the DSB to enable market participants to meet their European reporting obligations,” said Dan Kuhnel, chair of the board of the Association of National Numbering agency, parent organization of the DSB.
The DSB provides Web-based, direct connection and intermediary access to the DSB services of OTC derivative ISIN creation and access to the OTC ISIN data archive for research or download. Registered users requiring only Web-based research and/or automated download of the archive current to the most recent end-of-day are charged no fees. For users creating ISINs, requiring intraday information about new ISINs or connecting programmatically to the DSB, annual fees are charged, funding the operations of the DSB on a cost-recovery basis. The DSB ISINs may be used and redistributed without restriction.
Today’s launch signals the beginning of the transition from pre-production User Acceptance Testing (UAT) mode that has been open for five months. More than 500 users from 167 organizations made use of the UAT environment. Sixty-six organizations have applied for direct FIX connectivity, of which 36 are active across 130 connections. Three organizations have connected with the UAT environment through the REST API. Many more organizations have informed the DSB that they are evaluating connectivity options, including utilizing intermediaries for programmatic connections.
The launch of the DSB production environment also represents the ongoing work of the DSB Product Committee, the industry group responsible for determining the reference data requirements to create ISIN identification codes for a broad range of over-the-counter derivative products. These product templates have been loaded into the DSB.
“We congratulate and thank all who contributed to turning this vision into a reality for the benefit of the global financial industry”, says Emma Kalliomaki, Managing Director of the DSB.