UTI: Difference between revisions
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A UTI is a means of identifying a financial transaction and is required to be allocated to every derivative transaction that must be reported to a [[Trade Repository]] under [[EMIR]]. The regulators have not stipulated how it is to be created, instead it is being left to market participants to devise a suitable system or indeed a variety of approaches. | A UTI is a means of identifying a financial transaction and is required to be allocated to every derivative transaction that must be reported to a [[Trade Repository]] under [[EMIR]]. The regulators have not stipulated how it is to be created, instead it is being left to market participants to devise a suitable system or indeed a variety of approaches. | ||
If the UTI is created by one party to a trade and if it incorporates that party’s [[ | If the UTI is created by one party to a trade and if it incorporates that party’s [[Legal entity identifier]] (LEI)(or part of it) as a prefix it can then add a transaction specific reference controlled so that it is unique within that firm. The combination of LEI plus internal reference should be unique externally too. There then has to be a hierarchy to determine which party generates the UTI or whether some third party like a dealing platform or broker is better able to fulfil the role. Whether or not a standardised system is adopted, ultimately it will be up to the parties to a deal to agree what UTI they use, and obviously both must use the same UTI. | ||
Revision as of 15:37, 15 November 2013
Unique Transaction Identifier.
A UTI is a means of identifying a financial transaction and is required to be allocated to every derivative transaction that must be reported to a Trade Repository under EMIR. The regulators have not stipulated how it is to be created, instead it is being left to market participants to devise a suitable system or indeed a variety of approaches.
If the UTI is created by one party to a trade and if it incorporates that party’s Legal entity identifier (LEI)(or part of it) as a prefix it can then add a transaction specific reference controlled so that it is unique within that firm. The combination of LEI plus internal reference should be unique externally too. There then has to be a hierarchy to determine which party generates the UTI or whether some third party like a dealing platform or broker is better able to fulfil the role. Whether or not a standardised system is adopted, ultimately it will be up to the parties to a deal to agree what UTI they use, and obviously both must use the same UTI.
