DMIST Publishes Final Standard for Position Transfers

DMIST drops the rulebook that could reshape how institutions handle digital asset transfers.

The Final Standard Arrives

After months of industry anticipation, the Digital Market Infrastructure Standards Team releases its definitive framework for position transfers. This isn't just another guideline—it's the blueprint institutions need to finally treat crypto transfers with the same rigor as traditional securities.

What Changes Now

Clear protocols replace fragmented approaches. Settlement windows tighten. Counterparty risk gets slashed. The standard bypasses existing patchwork solutions that have left firms navigating regulatory gray areas.

Why It Matters

Banks and funds get the clarity they've been demanding. Liquidity improves when everyone plays by the same rules. The framework cuts through the operational chaos that's plagued institutional crypto adoption.

Wall Street's reaction? Probably forming another committee to study it—because nothing moves faster than traditional finance embracing innovation.

DMIST,  the Derivatives Market Institute for Standards, published the Final Standard designed to improve the processing of position transfers in the exchange-traded derivatives markets. This is the third final standard published by DMIST, an independent organization formed by FIA in July 2022, to promote greater efficiency across the trading and clearing workflow.

The Position Transfer Standard covers the movement of open positions between accounts—whether within a single clearing member firm or across different firms. Position transfers play a critical role in managing risk, optimizing margin, correcting allocations, balancing portfolios, changing clearing relationships and handling ownership changes due to mergers or acquisitions.

Currently, the position transfer process is largely manual. By introducing a standardized approach, DMIST aims to strengthen operational efficiency and resiliency, lower regulatory and operational risk by reducing manual intervention, and improve communication between clearing members and clients. This new standard lays the groundwork for greater automation of the process going forward.

, said: “Position transfers are crucial for clients to manage risk and optimize margins efficiently. A standardized approach ensures a more streamlined, consistent process for clients and fewer errors. Clearing members, clients, clearinghouses, and service providers collaborated to create this standard, which demonstrates the value of bringing together a diverse range of industry participants to discuss and shape solutions that benefit everyone.”

: “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.”

: “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.”

The Position Transfer Final Standard establishes 1) a template clients can use to submit a position transfer request to its clearing member(s) and a standard template for clearing members to more easily upload position transfer data to CCPs; and (2) a corresponding standard template for CCPs to adopt for receiving data from clearing members.

The standard is accompanied by a guidebook, which provides detailed information about each field in the client request form. DMIST will continually update the client request FORM and guidebook based on feedback from market participants.

The standard also defines timing for simple and complex position transfers. It recommends that:

• Simple position transfers requested five hours ahead of the market clearing close be completed the same day after receiving the completed client request form,
• Complex transfers be completed within 48 hours or sooner of receiving the completed client request form, and
• Complex transfers that require exchange approval be completed within 72 hours or sooner of receiving the completed client request form.

The standard also recommends that the client send the client request form simultaneously to both the originating and receiving clearing members.

The Position Transfer Implementation Working Group will continue meeting to encourage adoption of the standard. An API Focus Group will publish guidance for a standard API, using the fields identified in the CCP upload functionality table. The working group also will create an implementation guide to provide additional guidance to CCPs and service providers that are implementing the standard.

Download the Position Transfer Final Standard and Client Request Form Guidebook DMIST also is releasing the Average Pricing Implementation Guide. The Average Pricing Standard applies to all CCPs globally. It calls for CCPs currently offering Average Pricing to review their functionality and adapt to the minimum functionality standards set out in the Standard.For CCPs that currently do not provide on-CCP Average Pricing, the guide provides a detailed roadmap to develop globally recognized Average Pricing functionality. The guide covers how the standard should be applied, provides a CCP workflow, methods for calculating average price and cash residuals, and more information on technology considerations. Source: FIA