The Association of National Numbering Agencies (ANNA) today announced it has extended its relationship with Etrading Software Ltd. (ETS), which has served as the technical partner for the development of the ANNA Derivatives Service Bureau (DSB), to include management services for the OTC Derivative ISIN allocation utility. The engagement of ETS in the role of Management Services Partner (MSP) has a four-year duration covering the start-up through the early years of the DSB’s operation. At the conclusion of the contract, the role will be subject to an RFP-based evaluation.
“The selection of ETS as our partner for management services was a logical strategic next step at this juncture of the initiative,” said Dan Kuhnel, chairman of the ANNA board of directors. “Based on the pool of talent they can provide, their direct experience with standards, their involvement in the area of OTC derivatives, management of data-based utilities, and their track record of effectively working with stakeholder groups, they are a natural choice to manage the DSB through its early years.”
As MSP, ETS will manage the business aspects of the Derivatives Service Bureau, working closely with ANNA and BearingPoint, the global management and technology consultancy in section that is supporting ANNA on key start-up issues including funding, revenue model development, creation of the governance framework, and the RFP-based selection of the service provision provider that will be responsible for providing and managing the infrastructure of the DSB. The role will also include being involved in the day-to-day management of the ISIN-allocation services provided by the DSB, as well as related reference data services.
The recent direct experience of ETS includes derivatives taxonomy development, derivatives analysis projects related to identifiers for regulatory reporting, and development and management of financial data utilities. In addition, ETS served as the technical partner of ANNA in developing the real-time ISIN allocation engine for the DSB.
“We are delighted and honored to be selected by the ANNA organization to help shepherd the DSB through its first years,” said Sassan Danesh, partner in Etrading Software. “We look forward to working with market regulators and industry participants to assist in the successful launch of the DSB service well in advance of the MiFID II 2018 deadline.”
About the ANNA Derivatives Service Bureau (DSB).
The DSB will provide rapid allocation of the International Securities Identification Number (ISIN) for OTC derivative products. These unique instrument identifier codes will be issued to counterparties and trading venues to meet their business operations and mandated regulatory reporting needs.
The development schedule of the DSB includes full implementation and testing by relevant financial entities before January 2018 when the second version of the Market in Financial Instruments Directive (MiFID 2) goes into effect in the European Union. MiFID 2 requires reporting of certain OTC derivatives transactions using ISINs.
ANNA will make technical and business information available to the marketplace to the following timeline:
- 25 October 2016: Publication of the DSB product governance framework;
- Q4 2016: Publication of data taxonomy based on FpML to work with the FIX messaging protocol to identify OTC derivatives;
- Q4 2016: Public preview of the engine through a web interface to allow regulators and market participants to test and provide early feedback;
- Q1 2017: Technical access for formal industry testing of the engine.
Additional information on this initiative can be found in these previous ANNA announcements:
ANNA Announces Progress of Automated Platform for ISIN for OTC Derivatives, 14 September 2016
ANNA Announces Support for FIX Taxonomy for ISIN for OTC Derivatives, 20 September 2016
ANNA to Revamp Structure and Add Management Resources, 27 September 2016
ANNA Engages BearingPoint Management and Technology Consultancy for New Service Bureau for OTC ISINs , 10 October 2016
ANNA Releases Connectivity Specifications for the Derivatives Service Bureau, 11 October 2016
About Etrading Software Ltd.
Headquartered in London, Etrading Software has been serving capital markets organizations with solutions to shared electronic trading challenges since 2005. Recognized for its work in supporting the development of financial data utilities, Etrading Software has also assisted standards bodies and groups of firms in developing critical data standards, infrastructure and trading solutions. Its dedication to increasing efficiency, reducing risk and trimming costs from electronic trading operations has made Etrading Software one of the most respected technology consultancies in Europe. For further information about the services, projects and mission of Etrading Software, please visit the website at etradingsoftware.com.
Established in 1992 by 22 founding numbering agencies, ANNA is the membership organization of national numbering agencies, which are operated by depositories, exchanges, government agencies, nationally central data vendors and other financial infrastructure organizations. ANNA also serves as the registration authority for the ISIN numbering standard, under appointment by the International Organization for Standardization (ISO). Under ANNA’s stewardship, the role of the ISIN in enabling global financial communications has been established worldwide. ISINs are issued today in excess of 200 jurisdictions worldwide, while the number by national numbering agencies and nations working to establish national numbering agencies continues to grow each year, now surpassing 120 jurisdictions globally.
For information about ANNA, its members and activities, please visit anna-web.org.
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