UPI & Taxonomies

The OTC Taxonomies provide a classification for each of the derivative asset classes, with a primary goal to facilitate regulatory reporting. The Taxonomies will be used to classify trades reported to the asset-class specific Swap Data Repositories. The industry has produced taxonomies for each of the asset classes: credit, interest rates, commodities, equities and FX, which we expect to evolve over time. The final taxonomies have been integrated in the FpML data standard to facilitate the reporting process. Coordination with other international standards such as ISO to align with the ISDA taxonomies is ongoing.

Legal Entity Identifiers (LEI)

A Legal Entity Identifiers (LEI) – is a identifier associated with a single corporate entity that identifies that entity in the financial market. In essence, LEIs constitutes a “social security number” system for entities. Although no common entity ID convention exists in the market today, a range of regulatory initiatives are driving the creation of a universal LEI standard for financial markets. LEI will help enable organizations and regulators to more effectively measure and manage risk while providing substantial operational efficiencies and customer service improvements. The FSB LEI Expert Group has been working on identifying the key issues and developing framework solutions.The FSB has, however, decided to provide early clarity on two technical points.First, the Expert Group has agreed that a 20-character alphanumeric code is a good basis for the global LEI code. Second,the eligibility criteria as well as the reference data that the regulatory community views as essential and, consequently, would require to be associated with the identifier.For more information on the technical features of LEI click here. ISDA and the industry are committed to promoting widespread adoption of the global LEI. The CFTC Interim Compliant Identifier (CICI), as its name implies, is an interim identifier that will be used in recordkeeping and reporting under CFTC jurisdiction. The Commission is participating in an international process, coordinated by the Financial Stability Board (FSB), to establish governance principles and technical requirements for a global legal entity identifier (LEI). Until the FSB endorses the recommendations, the CFTC is referring to the identifier to be used in reporting as the CFTC Interim Compliant Identifier (CICI). The Commission anticipates that the CICI will transition into the global LEI, and be referred to as the LEI.

Unique Swap Identifiers (USI)/Unique Trade Identifier (UTI)

Unique Swap Identifiers (USI), which is the CFTC term or Unique Trade Identifier (UTI) which is the term used more globally is an identifier on the transaction level that stays unique throughout the life of a trade. ISDA has published an overview document with USI design and guiding principles to be used for the generation and consumption of a USI. This document includes the treatment of USI in various workflow scenarios. The CFTC is about to publish a document with the technical specifications for a USI.