More Stories

Informist, Thursday, Oct. 23, 2025

 

--RBI releases draft on unique transaction identifier for OTC derivatives 

--RBI: Moot mandating Unique Transaction Identifier for OTC derivative trades 

 

MUMBAI/NEW DELHI – The Reserve Bank of India has proposed making a Unique Transaction Identifier compulsory for over-the-counter derivative trades starting Apr. 1, according to a draft circular published Thursday. The identifier will be applicable to rupee interest rate derivatives, forward contracts in government securities, credit derivatives, foreign currency derivatives and foreign currency interest rate derivatives in India.

 

The central bank has sought feedback on the draft norms by Nov. 14. The proposal is in line with international norms that allow regulators more visibility on transactions in the over-the-counter market, the RBI said. It has already implemented a unique Legal Entity Identifier code for a trading house entering into such transactions, with a trade-by-trade view now giving more granular data.

 

"UTI (Unique Transaction Identifier) has also been implemented / is in the process of being implemented in many of the major jurisdictions," the RBI said in a release. "It is now proposed to mandate UTI for all OTC derivative transactions."

 

The Unique Transaction Identifier shall be generated in accordance with the UTI Technical Guidance issued by the Committee on Payments and Market Infrastructures, the RBI said. For transactions reportable only in India, either the central counterparty shall generate the identifier or the Electronic Trading Platform. For transactions reportable in India and one or more foreign jurisdictions, the central counterparty or the clearing member should issue the identifier.

 

If a transaction is reported to the Clearing Corp. of India Ltd. – Trade Repository without the identifier, Clearing Corp. shall generate the identifier for the transaction. "The rules diverge depending on the foreign jurisdiction's timeline for reporting the trade, but the CCIL's Trade Repository remains the last port of call to generate even a temporary identifier."

 

Clearing Corp. shall issue the revised reporting formats for reporting of derivative transactions, with Unique Transaction Identifier and the operating guidelines for the purpose, the RBI said. "Market participants shall ensure that necessary measures are put in place for ensuring compliance with these instructions," it said.  End

 

Reported by Kabir Sharma

Edited by Ashish Shirke

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.