RBI Draft: Unique Transaction Identifier for OTC Derivatives
Why in the news
RBI proposed giving each over-the-counter derivative deal a unique reference.
Key facts
- Applies to rupee interest rate, foreign currency, government-securities forward, foreign currency interest rate and credit derivatives.
- The code tracks the deal across its lifecycle.
- Purpose: a full view of the OTC market, better systemic risk monitoring, transparency and integrity.
Terms
| Term | Meaning |
|---|---|
| UTI | Unique alphanumeric code per derivative deal |
| OTC derivative | Privately negotiated contract between two parties |
Exam angle
- Maximum length: 52 characters.
- Know LEI.