The Reserve Bank of India has issued directions mandating the generation and reporting of a Unique Transaction Identifier (UTI) for all over-the-counter (OTC) derivative transactions undertaken under specified governing regulations, including foreign exchange derivatives, rupee interest rate derivatives, forward contracts in Government securities, and credit derivatives. The directions shall come into effect from January 01, 2027 and will apply to all OTC derivative transactions entered into on or after that date. The UTI, to be generated in line with the February 2017 CPMI-IOSCO Technical Guidance, shall consist of up to 52 characters, including the Legal Entity Identifier (LEI) of the generating entity, and shall remain unique throughout the lifecycle of the transaction. A waterfall mechanism has been prescribed for determination of the UTI generating entity, with the Clearing Corporation of India Limited – Trade Repository (CCIL-TR) acting as the fallback generator where required. Market participants are required to put in place necessary systems and processes to ensure timely generation, reporting, and compliance with these directions.
Link – https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13307&Mode=0
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