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.