DMIST Finalizes Standard to Streamline Position Transfers in Derivatives Markets
The Derivatives Market Institute for Standards (DMIST) has unveiled its aimed at transforming the way position transfers are handled in the platform-traded derivatives markets. This marks the third final standard published by DMIST since its formation by the Futures Industry Association (FIA) in 2022. By focusing on position transfers—the movement of open positions between accounts at the identical or diverse clearing member firms—the new framework addresses one of the most operationally intensive processes in derivatives trading.
Position transfers play a crucial role in managing client risk, optimizing margins, correcting trade allocations, and balancing portfolios. They are also necessary in the event of clearing relationship changes or corporate actions such as mergers and acquisitions. Currently, much of the process is manual, creating inefficiencies and potential risks. DMIST’s standardized approach viewks to modernize this area by introducing consistent templates, process definitions, and timelines that enable greater automation.
The initiative has broad members, clients, clearinghouses, and service providers all contributing to the design of the standard. By reducing reliance on manual processes, the standard is expected to strengthen operational resilience, cut regulatory risk, and improve communication ecosystem.
Industry Leaders Endorse the Change
Market leaders welcomed the announcement, stressing both the operational and strategic benefits. Samina Anwar, senior director of global derivatives operations at Cargill and chair of the DMIST Sponsor Board, underscored the importance of consistency.
“Position transfers are crucial for efficiently. A standardized approach ensures a more streamlined, consistent process for clients and fewer errors,”
she said, noting the value of cross-industry collaboration in shaping the outcome.
Tim Hoopes, executive director at Morgan Stanley and leader of the Position Transfer Working Group, emphasized that the standard resolves key pain points in the process.
“This standard introduces a new level of consistency and structure to the position transfer process. It harmonizes and streamlines two critical steps in the process: communication from the client to the clearing member, and from the clearing member to the central counterparty (CCP)—while also drawing a distinction between simple and complex transfers.”
His comments highlight the operational clarity now embedded in the framework.
Don Byron, executive director of DMIST, described the release as a landmark moment for the industry.
“This is a real success story for both the industry and DMIST. The Position Transfer Standard will drive meaningful change. The clearing members, clients, CCPs and service providers who collaborated during the standard development process can be proud of what they have achieved.”
These remarks underline the consensus-driven approach that guided the creation of the standard and its potential to reshape industry practices.
Key Features and Implementation Roadmap
The Final Standard sets out practical tools and timelines to ensure smooth adoption. It introduces a uniform template for clients to submit position transfer requests to clearing members and a corresponding template for clearing members to upload position data to CCPs. CCPs are encouraged to adopt standardized formats to receive this information, reducing operational friction across the process. A detailed guidebook accompanies the release, providing definitions for each field and ensuring consistent interpretation across firms.
Timelines for processing are explicitly defined. Simple transfers requested at least five hours before the market clearing close should be completed the identical day. Complex transfers are expected within 48 hours, and those requiring platform approval should be finalized within 72 hours. The standard also requires clients to submit requests simultaneously to both originating and receiving clearing members, ensuring parallel processing and quicker reanswer.
To support future adoption, DMIST has tasked its Position Transfer Implementation Working Group with encouraging firms to embed the standard. An API Focus Group will publish guidance for standard APIs based on the data fields identified, while an implementation CCPs and service providers with practical steps to align with the framework. Alongside the Position Transfer Standard, DMIST has also released its Average Pricing Implementation Guide, which sets minimum functionality for CCPs worldwide and provides a roadmap for those not yet offering on-CCP Average Pricing.
Investor Takeaway
