ANNA Releases Connectivity Specifications for the Derivatives Service Bureau
The Association of National Numbering Agencies (ANNA) today announced the availability of specifications for connecting its Derivatives Service Bureau (DSB) to trading platforms and front office systems. The connectivity is based on the messaging protocol of the FIX Trading Community and will enable user systems to interact directly with the real-time engine of the DSB, registering for and obtaining International Securities Identifier Numbers (ISINs) for OTC derivatives contracts, as well as researching existing ISINs and obtaining related reference data.
The connectivity specifications may be obtained through this link to the registration page. Registration data will be used to communicate with potential users of the engine regarding technical matters and to initiate the creation of a user group.
“The technology implementation of the DSB continues to be progressing ahead of schedule with the objective of enabling industry user acceptance testing (UAT) by the end of Q1, well before the January 2018 deadline when MiFID 2 goes into effect,” reported Sassan Danesh, managing partner in Etrading Software, the London-based management and technology consultancy which serves as the technology partner to ANNA in the development of the DSB. “The connectivity specifications are being provided before full access to the DSB in order to enable the industry to evaluate and budget for the integration and testing process, as well as associated impacts on related operational processes and systems.”
The selection of the FIX protocol for the initial messaging structure was based on several factors. These include the existing dominance of FIX as a standard for interoperability among front office systems and trading platforms, as well as the ability of FIX to support interoperability with the multiple data taxonomies that may be required for the issuance of ISINs, including taxonomies from FpML, regulators, FIX and ISO 20022 as they emerge.
In December, ANNA will release the data specifications for use with the FIX messaging protocol for the DSB. These specifications incorporate FpML taxonomy, and reflect the work of the ISO study group for development of the ISIN for OTC derivatives. Future releases will provide support for additional data taxonomies based on voluntary, consensus standards such as FIX and ISO 20022.
“The ultimate objective is to provide a choice of data taxonomies to minimize complications and costs for users and to future-proof the DSB for cross-jurisdiction regulatory and end-user requirements,” reported Alan Dean, member of the ANNA board of directors.
ANNA will ensure the ongoing maintenance of data specifications for ISINs for OTC derivatives, including addressing emerging products, through the formation of the DSB product governance group which will bring together industry and regulatory representatives. More detailed information about the product governance group is scheduled for publication on 25 October 2016.
About the ANNA Derivatives Service Bureau (DSB).
The DSB will provide rapid allocation of the International Securities Identification Number (ISIN) for OTC derivatives contracts. These identifying codes will be issued to counterparties and trading venues for business operations and regulatory reporting. The DSB is based on an automated real-time allocation platform developed by ANNA with Etrading Software, a London-based professional services technology firm, and built on state-of-the-art, open-source architecture.
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 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
For more information about the ANNA Service Bureau, please visit the ANNA website.
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 120 jurisdictions, while the number of national numbering agencies and nations working to establish national numbering agencies continues to grow each year.
For information about ANNA, its members and activities, please visit anna-web.org.
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