Brief Overview:
RBI has introduced a structured framework requiring every OTC derivatives to carry a globally compliant Unique Transaction Identifier (UTI) to strengthen oversight and standardise global reporting standards.
Effective from 1st January 2027.
Technical Details:
Key Highlights
1) Applicable to:
(a) INR interest rate derivatives
(b) Forward contracts in Government securities
(c) Foreign currency and currency interest rate derivatives
(d) Credit derivatives
2) UTI format: Must comply with CPMI‑IOSCO Technical Guidance; max. 52 characters
3) UTI structure: LEI of the UTI generator + unique transaction identifier
4) New UTI: Required only for life‑cycle events (e.g., novation), not for contractual amendments
5) UTI generator (priority): CCP → ETP → Agreed Entity → CCIL‑TR
6) Cross‑border trades: Foreign reporting timelines may determine UTI generation
7) Reporting timeline: Final UTI to be reported within 5 Mumbai business days.
Takeaways:
The move enhances transparency, harmonizes India’s reporting practices with international standards, and ensures regulators obtain accurate, consolidated visibility of OTC derivative markets.
For further details, please see:
Unique Transaction Identifier for OTC Derivative Transactions
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