On 16 July 2018, the Financial Stability Board (FSB) published a self-assessment questionnaire for prospective Unique Product Identifier (UPI) service providers, alongside an explanatory note.
The primary purpose of the UPI is to identify the product that is the subject of a particular over-the-counter (OTC) derivatives transaction. A UPI would be assigned to each product, and regulators would be able to aggregate OTC derivatives transactions by product (using the UPI code) or by individual reference data elements that comprise the product.
In consideration of this, the FSB seeks self-assessments from entities that wish to be designated by it as a UPI service provider. Each prospective UPI service provider is to present a business and self-governance plan that explains how it would:
- comply with the technical guidance on the UPI issued by the Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions in September 2017; and
- meet the key governance criteria and provide for the relevant governance functions set forth in section 2 of the questionnaire
The FSB invites prospective UPI service providers to complete the self-assessment and provide their responses by 4 September 2018.