The Derivatives Service Bureau (DSB), the global golden source of reference data for Over the Counter (OTC) derivatives, today announced the formation of a new Governance Advisory Committee (GAC) to provide additional industry guidance for both the International Securities Identification Number (ISIN) and the Unique Product Identifier (UPI) Services.

The GAC will complement the DSB’s existing two committees: the Product Committee (PC), which supports the evolution of the DSB’s product definitions, and the Technology Advisory Committee (TAC), which supports the evolution of the DSB’s technology and operations.

As part of a continuing commitment to serve the needs of participants in the OTC derivatives markets, the GAC will provide recommendations to the DSB board on governance matters related to the ISIN and UPI Services, including the DSB fee model, policies and subscription terms. 

The launch of the UPI Service on 16th October 2023 was the first in a series of important dates for global regulatory reporting, including the start of UPI reporting on 29th January 2024 in the US, followed by the EU-29th April 2024, UK-30th September 2024, Australia and Singapore from October 2024 and Japan 7th April 2025.

The DSB is responsible for the creation and distribution of both the ISIN – ISO 6166 for OTC derivatives, which is used in the EU & UK for price transparency and market abuse detection purposes, and the UPI – ISO 4914 to be used for transaction aggregation to identify the build-up of systemic risks at a global level. The GAC will provide guidance on key governance matters, such as the terms of use that support the best interests of all market participants globally.

Commenting on the announcement, Emma Kalliomaki, Managing Director of the DSB, said, “The new DSB Governance Advisory Committee will complement the DSB’s existing industry representation groups and the annual industry consultation process by enabling more frequent and in-depth dialogue between the DSB and stakeholders on governance matters. We look forward to the committee’s recommendations assisting to shape the DSB’s future.”

The timeline for the GAC establishment is as follows:

• 17 Jan 2024: Call for participation and publication of the GAC Charter

• 14 Feb 2024: Closure of applications

• 12 Mar 2024: Publication of the GAC membership

• 28 Mar 2024: Inaugural GAC meeting

GAC membership applications are encouraged from the broad range of market participants within the global OTC derivatives ecosystem, reflecting the variety of institutions across function, size and geographic region.