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Date: 2025-10-23 Category: Not Applicable State: Union Government Country: India

Unique Transaction Identifier for OTC Derivative Transactions in India - Draft

Issued by Reserve Bank of India · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** This Reserve Bank of India (RBI) draft circular outlines the implementation of the Unique Transaction Identifier (UTI) for Over-the-Counter (OTC) derivative transactions in India. It details the definition, applicability, and general guidelines for generating and reporting UTIs. The instructions in this circular will come into effect from April 01, 2026. **Key Points / Main Content** * **Definition of UTI:** * UTI is a unique identifier assigned to each OTC derivative transaction. * **Scope of UTI Implementation:** * UTI to be implemented for all OTC transactions in: * Rupee interest rate derivatives * Forward contracts in Government securities * Foreign currency derivatives * Foreign currency interest rate derivatives * Credit derivatives in India * **Applicability:** * UTI generation and reporting are mandatory for all transactions in OTC derivatives undertaken as per the Governing Directions. * **General Guidelines for UTI Generation:** * UTI must be generated according to the UTI Technical Guidance issued by CPMI-IOSCO. * UTI should be a maximum of 52 characters long, consisting of the Legal Entity Identifier (LEI) followed by a unique identifier. * The entity responsible for generating the UTI is determined by the waterfall approach defined in Table 1. * If the primary UTI generating entity cannot generate the UTI, the responsibility falls to the next entity in the waterfall. * CCIL-TR will generate the UTI if the transaction is reported to them without a UTI. * **Cross-Jurisdictional Transactions:** * For transactions reportable in both India and a foreign jurisdiction with an earlier reporting deadline, market participants should try to obtain and report the UTI on time. * If a market participant cannot report the UTI on time to the foreign jurisdiction, they can submit the UTI to CCIL-TR within two business days from the date of the transaction. The CCIL-TR generated UTI will be considered temporary. * **Other important points:** * Modifications to derivative contracts do not require a new UTI, but lifecycle events like novation do. * Implementation of UTI will not result in any change in OTC derivative contracts mandated to be reported to CCIL-TR, but the latter will issue revised reporting formats for the same. **Impact Analysis** **Eligible Market Participants** * **Impact:** Required to implement and report UTIs for all applicable OTC derivative transactions. * **Action Required:** * Understand the new UTI requirements and generation guidelines. * Modify systems and processes to generate and report UTIs as per the RBI guidelines. * Ensure compliance with the new reporting formats and deadlines. * Establish agreements between counterparties determining who should generate the UTI. **Clearing Corporation of India Limited (CCIL-TR)** * **Impact:** Is the fall back option to generate UTIs for transactions reported to them without a UTI and issues revised reporting formats. * **Action Required:** * Prepare to generate UTIs for transactions reported to them without one. * CCIL shall issue the revised reporting formats for reporting of OTC derivative transactions, including amendment or modification therein, with UTI and the operating guidelines for the purpose.

Key Entities Referenced

Unique Transaction Identifier (UTI): A unique identifier assigned to an OTC derivative transaction, implemented globally for reporting over-the-counter derivative transactions. Reserve Bank of India Act, 1934: The Act under which the instructions are issued, providing the Reserve Bank with the powers to regulate financial markets. Clearing Corporation of India Limited – Trade Repository (CCIL-TR): An entity involved in reporting OTC derivative transactions, that may generate the UTI under certain conditions. OTC Derivative Transactions: Over-the-counter derivative transactions in India, specifically in Rupee interest rate derivatives, forward contracts in Government securities, foreign currency derivatives, foreign currency interest rate derivatives, and credit derivatives.
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RESERVE BANK OF INDIA FINANCIAL MARKETS REGULATION DEPARTMENT 9TH FLOOR, CENTRAL OFFICE, FORT MUMBAI 400 001 To All eligible market participants Madam / Sir, Unique Transaction Identifier for OTC Derivative Transactions in India - Draft The Unique Transaction Identifier (UTI) has been conceived as one of the key data elements identified globally for reporting over-the-counter (OTC) derivative transactions with a view to enable policy makers to obtain a comprehensive view of the OTC derivatives market. 2. It has been decided to implement UTI for all transactions in OTC markets for Rupee interest rate derivatives, forward contracts in Government securities, foreign currency derivatives, foreign currency interest rate derivatives, and credit derivatives in India. A framework for the implementation of UTI for OTC derivative transactions, is enclosed at Annex. 3. The instructions shall come into effect from April 01, 2026. 4. The instructions contained in this circular have been issued in exercise of the powers conferred under section 45W of the Reserve Bank of India Act, 1934 read with section 45U of the Act and of all the powers enabling it in this behalf. Yours faithfully, (Dimple Bhandia) Chief General Manager(Annex to Draft circular dated October 23, 2025 on Unique Transaction Identifier for OTC Derivative Transactions in India) 1. Definition 1.1 “Unique Transaction Identifier” or "UTI” means a unique identifier assigned to an OTC derivative transaction. 1.2 “Governing Directions” for an OTC derivative transaction means the following: a. Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 (Notification no. FEMA.25/RB-2000 dated May 3, 2000) and Master Direction – Risk Management and Inter-Bank Dealings (Notification no. FMRD Master Direction No. 1/2016-17 dated July 05, 2016), as amended from time to time, for foreign exchange derivatives. b. Rupee Interest Rate Derivatives (Reserve Bank) Directions, 2019 (Notification no. FMRD.DIRD.20/2019 dated June 26, 2019), as amended from time to time and Reserve Bank of India (Forward Contracts in Government Securities) Directions, 2025 (Notification no. FMRD.DIRD.17/14.03.042/2024-25 dated February 21, 2025), as amended from time to time, for interest rate derivatives. c. Master Direction – Reserve Bank of India (Credit Derivatives) Directions, 2022 (Notification no. FMRD.DIRD.11/14.03.004/2021-22 dated February 10, 2022), as amended from time to time, for credit derivatives. d. Other Direction(s), as may be issued by the Reserve Bank, in exercise of powers vested in the Reserve Bank of India Act, 1934 or in the Foreign Exchange Management Act, 1999, as the case may be, permitting the use of OTC derivatives. 1.3 Words and expressions used, but not defined above, shall have the same meaning as assigned to them in the Reserve Bank of India Act, 1934. 2. Applicability 2.1 UTI shall be mandatorily generated / reported for all transactions in OTC derivatives market undertaken in terms of the Governing Directions.3. General Guidelines 3.1 UTI for transactions in OTC derivatives shall be generated in accordance with the UTI Technical Guidance issued by Committee on Payments and Market Infrastructures (CPMI) - International Organisation of Securities Commissions (IOSCO) in February 2017. UTI shall have a maximum of 52 characters consisting of the Legal Entity Identifier (LEI) of the generating entity followed by a unique identifier and shall be unique to a derivative transaction throughout its lifecycle. 3.2 UTI generating entity shall be determined as per the waterfall in Table 1 with the responsibility of UTI generation assigned to the next entity in the waterfall in case the identified UTI generating entity is unable or unwilling to generate the UTI. In terms of the waterfall, if a transaction is reported to the Clearing Corporation of India Limited – Trade Repository (CCIL-TR) without the UTI, the CCIL-TR shall generate the UTI for the transaction. Table 1: Generation of UTI Transactions reportable in India and Transactions reportable only in one or more foreign jurisdictions India 1) The CCP, for transactions where the 1) The Central Counterparty CCP is counterparty to the (CCP), for transactions where transaction; the CCP is counterparty to the transaction; 2) The Clearing Member, for 2) Electronic Trading Platform transactions where Clearing Member (ETP), for transactions is counterparty to the transaction; executed on an ETP; 3) ETP, for transactions executed on an 3) CCIL-TR. ETP; A. If a foreign jurisdiction has a sooner reporting timeline1 1 As per the order of UTI Regulatory Reporting Deadlines identified in the FAQs (CDIDE/2024/77) dated October 28, 2024 published by the Regulatory Oversight Committee (ROC).4) Entity as determined by the requirements in the foreign jurisdiction. B. If the foreign jurisdiction does not have sooner reporting timeline 4) Identified entity, based on the agreement between the counterparties determining who should generate the UTI; 5) CCIL-TR. 3.3 For transactions that are reportable in India and in a foreign jurisdiction, with the foreign jurisdiction having a sooner reporting timeline, market participants may undertake reasonable efforts to ensure that the UTI is obtained and reported in a timely manner. In case the market participant is unable to report the UTI within the reporting deadline, the market participant may obtain and submit the UTI to CCIL-TR within two business days from the date of the transaction. The prior UTI generated by the CCIL- TR will then be treated as a temporary / interim UTI. 3.4 Modification in any information pertaining to the derivative contract shall be treated as an update and shall not necessitate the generation of a new UTI. However, a lifecycle event such as novation that results in the creation of a new reportable derivative contract, as per extant reporting guidelines, shall result in the generation of a new UTI. 3.5 The implementation of UTI shall not result in any change in OTC derivative contracts mandated to be reported to CCIL-TR and market participants shall continue reporting transactions as per the extant directions. CCIL shall issue the revised reporting formats for reporting of OTC derivative transactions, including amendment or modification therein, with UTI and the operating guidelines for the purpose. 3.6 Market participants shall ensure that necessary measures are put in place for ensuring compliance with these instructions. -X-X-X

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