UTI: Difference between revisions
imported>Martin ODonovan (add links - some yet to be created) |
imported>Doug Williamson (Add "Also known as a unique trade identifier". Source: The Treasurer, May 2014, p17.) |
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Unique Transaction Identifier. | 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 | 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. | ||
Also known as a unique trade identifier. | |||
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* [[EMIR]] | * [[EMIR]] | ||
[[Category: | [[Category:Corporate_financial_management]] | ||
[[Category: | [[Category:Risk_frameworks]] | ||
Latest revision as of 11:30, 12 May 2014
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.
Also known as a unique trade identifier.
