Shearman & Sterling LLP | Financial Regulatory Developments Focus | Final Global Guidance on Unique Transaction Identifier Published
Financial Regulatory Developments Focus
  • Final Global Guidance on Unique Transaction Identifier Published
    The Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions have published Technical Guidance on the harmonization of the Unique Transaction Identifier. The development of a UTI was identified in September 2014 by the Financial Stability Board as a critical element for a mechanism to produce and share global aggregated derivatives reporting data, along with the development of a unique product identifier and the harmonization of other key data elements. The purpose of the global UTI would be to uniquely identify each OTC derivative transaction required by authorities to be reported to trade repositories. Numerous countries have implemented legislative and regulatory requirements for the reporting of OTC derivatives aimed at improving transparency, mitigating systemic risk and preventing market abuse. To date, 26 trade repositories have been established in 16 jurisdictions. The aggregation of data from those trade repositories is key to giving authorities a comprehensive view of the OTC derivatives market and activity.

    The Technical Guidance is intended to guide authorities in preparing rules for a global uniform UTI. The Technical Guidance includes, among other things, the circumstances in which a UTI should be used, the impact of life cycle events on the UTI, which entity should be responsible for generating a UTI, when a UTI should be generated and the structure and format of a UTI. The FSB is expected to launch a consultation on UTI governance in the next few months. The CPMI and IOSCO are continuing their work towards producing technical guidance on UPIs and the harmonization of other critical data elements.

    View the report.
    TOPIC: Derivatives