UTI: Difference between revisions

From ACT Wiki
Jump to navigationJump to search
imported>Martin ODonovan
(add links - some yet to be created)
imported>Martin ODonovan
(mend link)
Line 3: Line 3:
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 [[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.
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.


See also