The UTI is used to prevent the same trade from being reported more than once and to let authorities aggregate data across jurisdictions. In a trade between two entities that both have a reporting obligation, both report the same UTI, so they share it with each other, for example at the time of execution1.

A change in terms, an update of the valuation, and a correction of an error other than in the UTI itself are reported under the same UTI. On the other hand, a new UTI is assigned when a novation changes a counterparty or when a compression replaces a trade with other trades2.

Notes

  1. Financial Services Agency, "店頭デリバティブ取引等の規制に関する内閣府令第４条第１項で定める作成・保存・報告事項 ガイドライン" (Guidelines on the items to be prepared, retained, and reported under Article 4, paragraph 1 of the Cabinet Office Order on the regulation of OTC derivatives transactions, our translation) (December 2022), Attachment 2, section 2(2), page 1, and section 4(1), page 5 (in Japanese). ↩

  2. The same document, Attachment 2, section 5(1), pages 6–7 (in Japanese). ↩