OFR Congratulates CFTC and SEC on Initiation of Reporting on UPI for OTC Derivatives

The OFR congratulates the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) following the recent initiation of reporting of the Unique Product Identifier (UPI) for over-the-counter (OTC) derivatives.

The OFR, CFTC, and the SEC are members of the Regulatory Oversight Committee (ROC), an international body that promotes improving the quality of data used in financial reporting and improving the ability to monitor financial risk across jurisdictions. The ROC’s primary objective is to oversee the UPI System, the Global Legal Entity Identifier System (GLEIS), the Unique Transaction Identifier (UTI), and the Critical Data Elements (CDE) for OTC derivatives. The OFR serves as the ROC Secretariat.

On January 29, 2024, the UPI (ISO 4914) became a required data element under SEC and CFTC rules for recordkeeping and data reporting for all new and existing OTC derivatives swap transactions.

The UPI is designed to identify and facilitate effective harmonization and aggregation of OTC derivatives transaction reporting on a global basis. The UPI code consists of 12 alphanumeric characters and is based on data elements that define the product. The UPI can now enable the CFTC and the SEC to aggregate swap and security-based swap transaction data, providing transparency and oversight of these markets. Additionally, these data can be used by industry participants for market analysis.

This is a major achievement following years of international work that first began under the Committee on Payments and Market Infrastructures and the International Organization of Securities Commissions (CPMI-IOSCO), continued under the Financial Stability Board, and is now managed by the ROC.

The OFR is proud to have assisted in the standards development of the UPI and congratulates the CFTC, the SEC, and the Derivative Service Bureau on this milestone.