DSB Plans Service Improvements and Reduced User Fees for 2019

Blog entry

The Derivatives Service Bureau (DSB), which provides International Securities Identification Numbers (ISINs) for OTC derivatives, is planning service improvements for 2019 and estimating 2019 user fees 4% below 2018 levels, assuming similar uptake of the service in the OTC derivatives community.

The 2019 financial projections incorporate additional service improvements requested by industry during the 2018 consultation process. These include increased operational hours to 24/6.5 and improved email support response times. Enhancements to the OTC-ISIN functionality are planned for later in 2019 to enable real-time updates to DSB reference datasets such as currency codes and benchmark reference rates. Costs related to this enhanced functionality will be amortised from 2020, after the functionality is operational.

Emma Kalliomaki, DSB managing director, says: “With the 2017 financial audit now complete, we can confirm the 2017 build and operating costs of the service were well under budget. Under the cost recovery principles of the DSB, these savings will be passed back to users in 2019.”

The audited DSB build cost of €5.1 million was €751,000 under budget, resulting in €250,000 per annum of reduced amortisation costs in each of 2019, 2020 and 2021. Additionally, 2017 Q4 audited operating costs of €1.6 million were €672,000 below audited Q4 2017 revenues. These Q4 2017 operational cost savings will also be rebated in the 2019 fee year and will more than offset the underlying increase of 3% due to industry requested service improvements, increased transparency initiatives and inflation.