ANNA Opens Consultation on Fee Models for the Derivatives Service Bureau

Furthering Progress toward Identification of OTC Derivatives

The Association of National Numbering Agencies today opened the fee model consultation for the ANNA Derivatives Service Bureau.  The consultation seeks industry comments on the proposed fee model that will be applied to the numbering agency functions of the DSB, supporting cost-recovery principles in pricing of ISINs for OTC derivatives.

The consultation paper, published today, may be downloaded from the Fee Model Consultation page of the ANNA website.

The paper shares with stakeholders the details of various fee models under consideration, which range from charging for each single International Securities Identification Number (ISIN) allocated to segregating and amassing charges based on the services used. The cost basis of the DSB is discussed, as well as cost governance aspects. Additionally, assumptions about usage and market distribution are explained, and working examples are offered with illustrations of how activity volume and overhead considerations translate into potential transactional values.

“While there is nothing simple about calculating an overhead-based fee structure for a brand-new utility to serve a previously non-existent regulatory requirement in the market, there continues to be good news amid the complications,” said Dan Kuhnel, chairman of the ANNA board of directors. “Evolving volume is expected to drive down the cost of ISINs for OTC derivatives to low single digits in Euros. In determining exactly how the cost-recovery pricing will be structured, we look forward to the feedback of the industry on our work to date.”

A webinar will be held on 16 January 2017 at 2 p.m. GMT to discuss the consultation paper and the fee models being considered.  Please register your interest with your name and organization by emailing DSB-FM-Secretariat@etradingsoftware.com .
Responses to the Fee Model consultation may be sent to the DSB-FM-Secretariat@etradingsoftware.com until the consultation closes at the end-of-day on 6 February 2017.  Responses will be made public unless anonymity is requested by the respondent or specified for the question.

The DSB will consider the feedback it receives and expects to publish its conclusions by the end of February.