DSB Issues Final Consultation Paper on User Fees and Contracts

Blog entry

The Derivatives Service Bureau (DSB), which is responsible for issuing ISINs for OTC derivatives under MiFID II, has released a second and final consultation paper regarding user fees and contracts for 2019. Industry feedback is invited on topics including potential changes to user support services, service level agreements and resiliency after some proposals in the first consultation were discarded due to industry feedback.

The first consultation sought industry views on a broad range of topics arising from user feedback during the prior 12 months. The second consultation is intended to summarise industry responses and set out further details, including next steps where additional feedback is provided. It opened on June 28th, 2018 and will close at 5pm UTC on July 27th, 2018. The second consultation document includes a response form to be emailed to [email protected]. A final consultation report is due to be published on August 20th, 2018.

Emma Kalliomaki, managing director of the DSB, says: “In the responses to the first consultation, some of the contrasting interests and needs of various user groups became apparent. In this second consultation, we are investigating these interests more deeply to determine the best path forward for the DSB and its users.” She noted that the recently formed DSB Technology Advisory Committee will also provide guidance on matters related to infrastructure, connectivity and disaster recovery.

Specific areas of investigation in the second consultation are: revision of the user categories and fee model; changes to DSB functionality, including provision of more market timeline adaptive template models; service levels, including time of operation, technical support, streaming thresholds and weekly caps; and access and user agreements, including potential changes to the terms of any differentiated agreements for intermediaries.