Mastering UPI in global financial markets: ANNA-DSB’s essential guide for professionals

Mastering UPI in global financial markets: ANNA-DSB's essential guide for professionals

In the ever-evolving landscape of global finance, the implementation of a unique product identifier (UPI) has become paramount for regulatory compliance and operational efficiency. The European Union’s EMIR-REFIT initiative underscores the necessity of UPIs, a standard that transcends borders, encompassing major financial markets including the USA, the UK, Australia, the EU, and Singapore. This widespread adoption signifies a unified stride towards harmonisation in the financial sector.

Map FinTech, a RegTech platform helping companies meet regulatory obligations, recently delved into UPI generation for global markets.

At the heart of this harmonisation is the meticulous standardisation of inputs for UPI generation. Notable inputs include ISDA’s taxonomy for product categorisation, CFI codes for product classification, ESMA’s Transparency Calculations for equity indices, and more. These inputs, integral to the financial industry, facilitate a streamlined process for market participants to generate or retrieve accurate UPI codes. ANNA-DSB, taking a proactive role, offers a comprehensive library of product definitions, ensuring that market participants are well-equipped with the necessary information for UPI generation or retrieval.

Entering the realm of UPI generation and retrieval unveils a structured process overseen by ANNA-DSB. Entities aiming to generate UPIs are required to register with ANNA-DSB and settle a fee, the amount of which correlates with the volume of UPIs needed annually. Conversely, for entities solely interested in accessing already issued UPIs, ANNA-DSB provides a free registration option, albeit with certain limitations. This dichotomy ensures that the system remains flexible yet controlled, catering to the diverse needs of market participants.

The UPI’s design is notably issuer agnostic, adding a layer of versatility to its application. Once a UPI is generated for a specific financial product, such as a Non-Deliverable Forward on EURUSD with the EUR as the settlement currency, it can be retrieved and utilised by any other entity offering an identical product. This feature not only promotes efficiency but also fosters a more interconnected market environment.

However, the precision in UPI utilisation cannot be overstated. Entities are urged to ensure a deep understanding of the required inputs and maintain an exact match between the product traded and the UPI attributes.

To aid in this meticulous process, MAP FinTech introduces its UPI Link Service, a solution designed to facilitate the precise matching of product attributes with the issued UPIs. This service, integrated into MAP FinTech’s offerings, ensures accurate UPI reporting, featuring automated UPI identification, enrichment of reported files, error identification, inline editing for real-time amendments, and an advanced search function within the Polaris portal.

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