.png "RBI Mandates Unique Transaction Identifier for OTC Derivatives from January 01, 2027")
- The rollout, initially planned for April 2026, has been deferred to 1 January 2027 to allow system upgrades.
- Each trade will carry a 52-character UTI, built from the Legal Entity Identifier (LEI) plus a unique string.
- The UTI remains with the trade throughout its lifecycle, even if modified, except in cases of novation.
- A strict “waterfall” hierarchy decides who generates the UTI — CCP, ETP, mutual agreement, or CCIL as fallback.
- Its significance lies in enhancing transparency, standardized reporting, and global regulatory alignment in India’s derivatives market.
Question:
Q.1 Under the RBI's UTI guidelines, when does the Unique Transaction Identifier (UTI) remain unchanged throughout the lifecycle of an OTC derivative trade?a) It changes on every amendment or modification
b) It remains constant except in cases of novation
c) It is regenerated only for compression events
d) It changes upon reporting to the Trade Repository
Answer: b) The UTI remains with the trade throughout its lifecycle, even if modified, except in cases of novation.
