DEVELOPMENT & PROGRESS OF THE DSB

Transcription

1 DEVELOPMENT & PROGRESS OF THE DSB The Derivatives Service Bureau Emma Kalliomaki Managing Director ANNA & The DSB

2 AGENDA Background Governance Tech & Ops Workflows Estimated Volumes Status ToTV / utotv Product Committee Terms of Reference Status Fee Model Principles User Categories Base Case Example Next Steps Timeline Further Information Page 2

3 BACKGROUND What is the DSB? A technology numbering platform providing ISIN services operated on a cost recovery basis Within its scope of OTC derivatives, it provides the industry with an archive of International Security Identifier Numbers (ISINs) and their associated instrument reference data It is global in design and operation What does the DSB do? ISIN creation for new derivative product as required by market participants Distribution of ISINs and their associated reference data to market participants Interaction options include web interface, ReST API & FIX direct connectivity and file download Drivers EU regulators have mandated that ISINS identify instruments for MiFID2 / MiFIR reporting, including some OTC derivatives The DSB will be the sole source of ISINs for OTC derivatives and was engineered to serve the needs of regulators and industry participants, to enable the industry to meet January 2018 deadlines Global solution aligned with requirements of CPMI-IOSCO UPI initiative Page 3

4 GOVERNANCE Additional elements: Independent External Review - ongoing review of DSB activities including costs and cost management Industry Consultation - regular consultation with the broader industry on key technical, commercial, operational and product matters Page 4

5 TECH&OPS: WORKFLOWS Key DSB workflows: ISIN request by attributes Request attributes of existing ISIN Request ISINs created today Web Access File Download Derivatives Service Bureau (DSB) Subscribe to receive ISINs as they are created ReST API / FIX Access Shared infrastructure or Ring-fenced resources Page 5

6 TECH & OPS: ESTIMATED VOLUMES Name Description Value Clients Daily Messages Latency Bursts System Availability The number of recipients the Production System will support connecting. Initially the total number of messages supported by the network per day. A message is defined as an appropriate FIX message sent to the DSB. The time the Production System will initially take to route, process and delivered to 99% of recipients. This will be revisited once UAT has concluded. The number the Production System will initially be able to receive, process and deliver in a burst to 200 recipients within a minute. Production System availability. The system is designed with no single point of failure m / day 1 second 60,000 24x6 at 99.99% System Hours The hours the Production System will be available. Sunday 18:00 UTC Saturday 18:00 UTC Data retention The time the Production System will keep data. 10 years for Audit Logs ISINs indefinitely Page 6

7 TECH & OPS: STATUS Key Points Amazon WS and Datapipe appointed as cloud Service Provision Partners Connectivity options include VPN, SSL, Leased line and Cross-Connect UAT available since 03 April 2017 Current Focus Enriching the current set of draft templates for greater asset coverage ISDA Taxonomy and FpML codeset interface to the DSB Next Steps Finalize Design of ToTV / utotv service Implementation of ReST API scheduled 26 July 2017 Finalize Production hardening and Support Model roll out Publish DSB InfoSec document Page 7

8 TECH & OPS: TOTV / UTOTV Draft functional specification published on 28 th June Implementation of both ToTV and utotv flags Implementation of additional MiFID II flags such as Liquidity Flag, LIS Thresholds and SSTI Thresholds Ability to search both ISIN attributes and ToTV flags Next steps 17 th Jul Webinar on ToTV at 1200 UTC (secretariat@anna-dsb.com) 26 th Jul Final date for receipt of feedback from industry 09 th Aug Publication of final ToTV/uToTV functional specification 16 th Aug Publication of delivery timelines and technical specification Page 8

9 PRODUCT COMMITTEE: TERMS OF REFERENCE Initial OTC ISIN design must be: fully consistent with the ISO 6166 standard meet the expectations of the ISO leadership, including the generation of CFI and FISN codes must be extensible to multiple jurisdictions (generally) and as far as reasonably possible, consistent with CPMI-IOSCO s thinking on UPI leverage the ISO SG2 analysis for the initial design of the OTC ISIN wherever the Committee deems the SG2 analysis to be appropriate Initial OTC ISIN implementation: must meet the requirements of MiFID II as articulated by the ESMA observer on the Product Committee. must be implemented within the timelines for MiFID II go-live Page 9

10 PRODUCT COMMITTEE: STATUS Key Points Product definition is the responsibility of the DSB Product Committee The Committee has used the work of the ISO Study Group 2 to inform their work Released 2 Consultation Papers - 1 st focused on ISIN Principles & 2 nd on Product Definitions & TOTV proposal Current Focus Responding to open issues raised from UAT Preparing mapping for ISDA Taxonomy and FpML interface for the DSB Next Steps Publish Final Report from Consultation Paper 2 Product Definitions in UAT being refreshed 10 July 2017 Page 10

11 FEE MODEL: PRINCIPLES Cost Recovery The numbering agency services will be provided on a cost-recovery basis Unrestricted Data DSB ISINs and their associated data will have no licensing restrictions on usage and distribution Open Access Access to the DSB archive for consumption of OTC derivative ISINs and associated reference data will be available to all registered organizations and users Payment in Advance To the extent possible the DSB will levy fees through annual contracts that require payment in advance, in order to provide clarity in aligning fee levels with cost recovery Page 11

12 FEE MODEL: FEEDBACK & APPROACH 2 Consultation Papers Final Report 1 & Final Report 2 Key themes Strong support for principle of free and unrestricted access Requests for a simplified, multi-asset class model Merge the concept of ISIN users and ISIN creators equitable distribution of fees Requirement to address the needs of infrequent users Fee model based on timeliness of access to data Governance on costs and cost management Re-evaluation of the fee model following data capture from a full year of production activity Intermediary effect end users to sign User Agreement & pay appropriate fee Excess fee redistribution Use of excess revenue to offset subsequent years fees Page 12

13 FEE MODEL: USER CATEGORIES AND TIERED SERVICES User Type Registered Infrequent Standard Power Web Access Real-time search for ISINs by identifier P P P P Real-time search for ISINs by attributes P P P P Maximum records returned per search Create new ISINs O P P P Max 100 per year Max 5,000 per year Cap subject to AUP File Download Access to ISIN + product attributes archive (@ end of day T-1) P P P P ToTV/ utotv flag P P P P Programmatic Access (FIX API and ReST API) Create new ISINs O O O P Search for attributes by ISIN O O O P Subscribe to today's ISINs O O O P Maximum number of API connections O O O 10 Fee Model Fee payable by user O P P P Page 13

14 FEE MODEL: BASE CASE EXAMPLE Common Assumptions Total DSB costs to be recovered: 8.8m Fee Ratio between Power Users and Standard Users = 3:1 Infrequent Users 3K annual fee Page 14

15 NEXT STEPS: TIMELINE 10 July July Jul July Sept October January 2018 User Agreement to be published UAT refresh of product definitions Webinar on ToTV / utotv (secretariat@anna-dsb.com) Final date for receipt of ToTV industry feedback ReST API available in UAT Deadline for to define the fee model variables Production launches MiFID II / MiFIR will come into force Page 15

16 FURTHER INFORMATION For further information please go to: UAT started on 3 April Users can register by ing: technical.support@anna-dsb.com Technical support can be reached at technical.support@anna-dsb.com Product Definition Documentation can be found at Page 16

17 Thank you! Page 17