On 2 May 2019, the Financial Stability Board (FSB) announced that it has designated The Derivatives Service Bureau (DSB) Ltd (DSB) as the service provider for the future Unique Product Identifier (UPI) system. As the sole issuer of UPI codes, the DSB will also be the operator of the UPI reference data library. The designation of the DSB comes after the FSB publicly invited prospective UPI service providers in July 2018 to submit self-assessments.
The primary purpose of a UPI is to identify the product that is the subject of a particular over-the-counter (OTC) derivatives transaction. A UPI will be assigned to each product, and regulators will be able to aggregate OTC derivatives transactions by product (using the UPI code as defined) or by individual reference data elements that comprise the product (such as the underlier). The report of an OTC derivative transaction that would be submitted to a trade repository (TR) would include the UPI of the product transacted.
The FSB has also decided that the data standard for the UPI code and the UPI reference data elements will be set as international data standards and has identified the International Organization for Standardization as the body responsible for publishing and maintaining these standards as international data standards.