Regulators seek input on harmonisation of unique OTC trade reporting identifiers
The Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions are seeking comment on proposals for harmonising the Unique Transaction Identifier used to be used for OTC derivatives trade reporting.
The consultation document Harmonisation of the Unique Transaction Identifier is looking for general and specific comments and suggestions from responders to ensure that the UTI guidance meets the authorities’ characteristics for the UTI and enables the consistent global aggregation of OTC derivatives transaction data.
The general points are:
- Which OTC derivatives transactions should be assigned a UTI?
- Which entity (or entities) should be responsible for generating UTIs in practice?
- What should be the structure and format of a UTI?
- What steps would help to ensure that UTIs generated under the new guidance are distinct (to the extent necessary to achieve aggregation) from those UTIs generated under existing regimes?
CPMI and IOSCO will be also be issuing a consultative report on technical guidance to authorities on definitions of a first batch of key data elements that are essential for meaningful aggregation of data on OTC derivatives transactions on a global basis, other than UTIs and unique product identifiers, and plan to issue consultative reports on global UPIs and a second batch of other key data elements.
G20 Leaders agreed in 2009 that all OTC derivatives contracts should be reported to trade repositories as part of their commitment to reform OTC derivatives markets in order to improve transparency, mitigate systemic risk and protect against market abuse.
Aggregation of the data reported across TRs is necessary to help ensure that authorities are able to obtain a comprehensive view of the OTC derivatives market and activity.
Following a 2014 feasibility study, the Financial Stability Board asked the CPMI and IOSCO to develop global guidance on the harmonisation of data elements reported to TRs and important for the aggregation of data by authorities, including the UTI and Unique Product Identifiers. This consultative report is one part of the Harmonisation Group’s response to its mandate. It focuses on the harmonised global UTI, whose purpose is to uniquely identify each OTC derivative transaction required by authorities to be reported to TRs.
The final objective is to produce clear guidance as to UTI definition, transaction data. The report seeks general and specific comments and suggestions from responders by 30 September 2015, to be sent to both the CPMI secretariat (email@example.com) and the IOSCO secretariat (firstname.lastname@example.org).