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 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 report envisions a UPI system in which a unique UPI code would be assigned to each distinct OTC derivative product, with each UPI code mapping to a set of data comprised of reference data elements with specific values that 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 guidance is global in scale, takes account of relevant international technical standards where available and is jurisdiction-agnostic. It covers the following areas:
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 (underliers); and
the UPI code structure.
This guidance does not address the governance arrangements or the implementation of the UPI, which are matters the FSB will soon consult on.
© BIS - Bank for International Settlements
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