September 28, 2017

CPMI-IOSCO published a report that provides technical guidance to authorities on a uniform global Unique Product Identifier (UPI) applying to over-the-counter (OTC) derivatives transactions. The report envisions a UPI system in which a unique UPI code would be assigned to each distinct OTC derivative product. Each UPI code would map to a set of data comprising reference data elements with specific values, which together describe the OTC derivative product. The collection of reference data elements and their values for each OTC derivative product would reside in a corresponding UPI reference data library.

The role of the UPI is to uniquely identify each OTC derivative product involved in a transaction that an authority requires, or may in future require, to be reported to a trade repository; this is consistent with the commitment of the G20 Leaders to a more transparent OTC derivatives market. Global uniform UPIs facilitate the consistent global aggregation and analysis of OTC derivatives transaction data reported across trade repositories that authorities can use to meet their legal obligations and prudential requirements. The guidance is global in scale, takes account of relevant international technical standards, where available, and is jurisdiction-agnostic. It covers the technical principles applicable to the UPI; the UPI reference data elements required for each OTC derivative asset class; the identification of underlying assets and benchmarks of OTC derivative products; and the UPI code structure. This guidance does not address the governance arrangements or the implementation of the UPI, which are matters that FSB will soon consult on.

This guidance is complementary to the technical guidance on harmonization of unique trade identifier (UTI), which IOSCO published in February 2017. CPMI and IOSCO also intend to produce guidance on harmonization of other critical OTC derivatives data elements in the coming months. Aggregation of the data reported across trade repositories can help provide authorities with a comprehensive view of the OTC derivatives market and activity to help improve transparency, mitigate systemic risk, and protect against market abuse. 


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Keywords: International, Securities, UPI, Harmonization of UPI, UTI, Trade Repository, CPMI, IOSCO

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