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EMIR

BIS/IOSCO consultation on UTI harmonisation

The Bank of International Settlements and IOSCO have issued this consultation paper which contains proposals to harmonise the use of Unique Transaction Identifiers across different derivative reporting regimes.

The different reporting regimes that arose out of the 2009 G20 Pittsburgh Declaration (such as EMIR and Dodd Frank) require that reported trades have an identifier. Under EMIR for example, the UTI is a 52 character code, which must be unique, and be the same when the trade is reported by each party. There have already been many issues around the generation of such UTIs, who should generate them and in what form they should be. Identifier codes under other regime such as Dodd Frank are again different.

The paper suggests several options for harmonising the approach across regimes. Once harmonised, it will be theoretically easier for regulators to examine systemic risk and signs of market abuse across jurisdictions.

While the proposal covers derivatives, it will be interesting to see if energy specific initiatives such as REMIT also adopt the proposals.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.

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