Friday August 19 2016

News Source: Global Exchanges

Focus: Other

Type: General




The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) have published for public comment a second consultative report on Harmonisation of the Unique Product Identifier (UPI). 

The consultative report makes proposals for the harmonised global UPI, whose purpose is to uniquely identify over-the-counter (OTC) derivatives products that authorities require to be reported to trade repositories (TRs). The UPI system will assign a code to each OTC derivative product that maps to a set of data elements describing the product in a corresponding reference database. This reference database (previously known as a “classification system”) was the focus of the first consultative report on the Harmonisation of the UPI issued by the CPMI and IOSCO in December 2015. 

The focus of this second consultative report is the format of the UPI code and the content and granularity of the UPI data elements. In drafting this second consultative report, the CPMI and IOSCO have considered the responses to the first consultative report. 

The report responds to the G20’s agreement in 2009 that all OTC derivatives contracts would be reported to TRs, as part of the G20’s commitment to reforming OTC derivatives markets with the aim of improving transparency, mitigating systemic risk and preventing market abuse. Aggregation of the data reported across TRs will help ensure that authorities can obtain a comprehensive view of the OTC derivatives market and its activity. 

Following the 2014 feasibility study, the Financial Services Boards (FSB) asked the CPMI and IOSCO to develop global guidance on the harmonisation of data elements reported to TRs and important for the aggregation of data by authorities, including the Unique Transaction Identifier (UTI) and UPI. 

This consultative report is part of the Harmonisation Group’s response to that mandate. The report seeks general and specific comments and suggestions from respondents by 30 September 2016, to be sent to both the CPMI secretariat (cpmi@bis.org) and the IOSCO secretariat (upi@iosco.org).  

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