What is DMIST?
Derivatives Market Institute for Standards, Inc.—DMIST—is an industry-governed standards body focused on improving the efficiency, resiliency, competitiveness and innovativeness of the exchange-traded and cleared derivatives markets.
What does DMIST do?
DMIST provides a consensus and collaboration framework for defining, adopting, housing and overseeing common behaviors, workflows, and processes in the trade and clearing lifecycle for the benefit of all sectors of and participants in the exchange traded and cleared derivatives industry. Standards published by DMIST will aim to improve the efficiency and resilience of the clearing ecosystem and will be technology- and vendor-agnostic.
What is FIA’s role in DMIST?
The Futures Industry Association, Inc. (FIA) is the founder and sole statutory member of DMIST, and elects DMIST’s Executive Director. The day-to-day operations of DMIST are supported by FIA, through FIA staff.
How is DMIST managed and governed?
DMIST is managed by the Executive Director and the standard-setting process is overseen by a non-fiduciary Sponsor Board. In carrying out its duties and responsibilities, which will include submitting proposals for and approving standards, the Sponsor Board will be supported by committees and working groups.
How are DMIST’s activities funded?
While DMIST has benefited from start-up funding from FIA, DMIST is structured to be self-sustaining, primarily through participation fees. Industry users will not be charged a royalty or other fee to utilize adopted standards, which will be open-source and technology- and vendor-agnostic.
What does it cost to participate in DMIST?
The current established rate for participation in DMIST as a Sponsor is $10,000 USD annually. The current established rate for participation in DMIST as an Ambassador is $5,000 USD annually. These rates are subject to change by DMIST in accordance with its policies and procedures.
What DMIST participation levels are available?
DMIST has two levels of participation, Sponsor and Ambassador. Sponsors must be market participants (e.g., clearing firms, exchanges, executing brokers, customers, etc.). Sponsors will oversee the process for developing standards, may submit proposals for developing standards, will appoint Ambassadors, and will approve industry standards. Ambassadors will be subject matter experts that form working groups for developing and vetting standards. Ambassadors may also submit proposals for developing standards to the Sponsor Board and may respond to consultations on standards. DMIST is seeking Sponsors and Ambassadors that broadly represent the exchange-traded and cleared derivatives industry.
Neither Sponsor nor Ambassador participants will be considered statutory members pursuant to the Delaware General Corporation Law.
What is the application process for DMIST participation?
Organizations and individuals interested in DMIST participation must submit an application, indicating their desired participation level and providing certain information relevant to their admission, for consideration by DMIST. Through the admission process, applicants will be asked to agree to Terms of Participation, which seek participant agreement and commitment and define participant rights, including, but not limited to, the following areas:
- Compliance with DMIST participant guidelines, policies and procedures issued from time to time, including, without limitation, with respect to fees, governance, standards formation, dispute resolution, ethics and antitrust;
- Maintaining the confidentiality of information furnished or received in connection with DMIST participation;
- Ownership by DMIST of intellectual property rights in standards, with Sponsor and Ambassadors granting a license to DMIST and other participants to use their contributions in connection with the formation and use of those standards;
- Permission for DMIST to publicize the name and role of each participant, without use of the participant’s logo or other trademark unless consent is provided;
- Ability of DMIST and each participant to terminate their participation upon the required notice;
- Disclaimer of warranties with respect to standards and exclusion of potential liability of DMIST and participants for certain damages; and
- Updates to the Terms of Participation and acceptance of notified updates through continued participation in DMIST.
How are DMIST standards developed?
DMIST standards are developed through a process that encourages cross-industry engagement and public consultation and feedback. In general, DMIST standards are formed through the following process:
- Proposed standards are received from Sponsor Board, Ambassadors or, upon acceptance of Terms of Submission, members of the public;
- The Sponsor Board determines whether established acceptance criteria are met, such as providing a significant industry benefit through the proposed standardization;
- DMIST forms Ambassador working groups to vet the technical, mechanical, logistical, and other details of accepted proposed standards;
- Endorsed proposed standards, including any proposed modifications or clarifications made by the working groups, are reviewed by the Sponsor Board and posted for public comment;
- The Ambassador working groups review any received comments and, if appropriate, revise the proposed standards, prior to submission to the Sponsor Board for final approval; and
- DMIST publishes and promotes the final approved standards, and monitors their adoption and implementation via transparency expectations for Sponsor Board Members.
How many people from my firm can participate in DMIST?
If a legal entity is accepted as a Sponsor Board Member, it must designate one individual to serve on the Sponsor Board. In addition to designating someone to serve on the Sponsor Board, Sponsor Board Members can designate an unlimited number of Ambassadors. Sponsor Board Members must designate a minimum of two (2) Ambassadors. A maximum of five (5) individuals from any one firm can serve on a specific working group or committee.
If a legal entity is accepted as an Ambassador, they can designate an unlimited number of Ambassadors. However, a maximum of five (5) individuals from any one firm can serve on a specific working group or committee.
How will approved standards be implemented and adopted?
The success of DMIST requires commitment to transparency with regards to adoption and implementation of standards. Each final, approved standard must specify transparency expectations for Sponsor Board Members regarding whether or not they have chosen to adopt or implement such standards, taking into account the applicability of that specific standard to various market participants as well as any unique implementation, adoption, and/or usage challenges. For the avoidance of doubt, the decision of each DMIST participant to adopt, implement and/or use a standard is at their own discretion, provided that any such adoption, implementation and/or use of a standard is in accordance with the DMIST Terms of Participation and Policies.
Who can I contact for more information?
For more information on DMIST please contact Don Byron, Head of Global Industry Operations & Execution, at email@example.com or Natalie Tynan, Associate General Counsel, Head of Technology Documentation Strategy, at firstname.lastname@example.org.