What changed
RBI introduces Unique Transaction Identifier (UTI) for OTC derivative transactions under specified Governing Directions (e.g., FEMA, Rupee Interest Rate Derivatives, etc.) to be reported to Trade Repository managed by Clearing Corporation of India Limited (CCIL-TR). UTI will be generated in accordance with the UTI Technical Guidance issued by Committee on Payments and Market Infrastructures (CPMI) - International Organisation of Securities Commissions (IOSCO) in February 2017.
What it means for you
This change will enable policy makers to obtain a comprehensive view of the OTC derivatives market, enhancing market transparency and regulatory oversight. Banks and lenders will need to ensure compliance with the new regulations.
What you must do
- Generate Unique Transaction Identifier (UTI) for all OTC derivative transactions
- Report UTI to Trade Repository managed by Clearing Corporation of India Limited (CCIL-TR)
- Ensure compliance with the new regulations
Who it affects
Banks, Lenders, OTC derivative market participants
What is Unique Transaction Identifier (UTI)?
UTI is a unique identifier assigned to an OTC derivative transaction under specified Governing Directions to enhance market transparency and regulatory oversight.
Who will generate UTI?
The UTI generating entity will be determined as per the waterfall in Table 1, with responsibility assigned to the next entity in the waterfall in case the identified UTI generating entity is unable or unwilling to generate the UTI.
When will the new regulations come into effect?
The new regulations will come into effect from January 01, 2027, and will be applicable to OTC derivative transactions entered into on or after the date the directions come into effect.