FSB confirmed the Regulatory Oversight Committee (ROC) of the Global Legal Entity Identifier System (GLEIS) as the International Governance Body for the globally harmonized identifiers used to track over-the-counter (OTC) derivatives transactions, with effect from October 01, 2020. In a letter to the ROC Chair François Laurent, the FSB Chair Randal K. Quarles confirmed the transfer of all governance and oversight responsibilities for the harmonized derivatives identifiers and data elements to the ROC.
Globally harmonized identifiers and data elements can help authorities to obtain a comprehensive global view of the OTC derivatives markets. The Unique Product Identifier (UPI) will identify the products reported to trade repositories consistently across FSB jurisdictions. The Unique Transaction Identifier (UTI) will identify transactions reported to trade repositories and allow authorities to follow their modifications during their whole lifecycle. The Critical Data Elements (CDE) will capture other important characteristics of the transactions. Reference to the Legal Entity Identifier (LEI) in the harmonized derivatives identifiers and data elements will allow consistent monitoring of legal entities’ trading activity, exposures, and interconnectedness in the global OTC derivatives markets.
ROC will be responsible for the governance of UPI, UTI, and CDE, which includes oversight of the UPI service provider designated by FSB, The Derivatives Service Bureau (DSB). The ROC has been tasked with finalizing the appropriately rigorous oversight arrangements of DSB. FSB asks ROC to update the FSB Plenary by January 2021 and, if necessary thereafter, on the progress in finalizing those oversight and contingency arrangements, given their relevance to the effective operation of the UPI and the UPI system and to the continued monitoring of financial stability risk.
Effective Date: October 01, 2020
Keywords: International, Banking, Securities, OTC Derivatives, Governance, LEI, UPI, Critical Data Elements, Trade Repository, UTI, DSB, Systemic Risk, LEIROC, FSB
Sam leads the quantitative research team within the CreditEdge™ research group. In this role, he develops novel risk and forecasting solutions for financial institutions while providing thought leadership on related trends in global financial markets.
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