ISDA Proposes UPI for MIFIR Reporting

ISDA Paper on UPI Identifiers for MIFID Transaction Reporting

Introduction

On July 16, ISDA submitted a paper titled 'UPI as the Foundation for OTC Derivatives Reporting: The Case for UPI' to the UK Financial Conduct Authority (FCA). This paper was developed to complement ISDA’s response to the FCA’s discussion paper DP24/2: Improving the UK Transaction Reporting Regime, which aims to enhance transaction reporting under the UK Markets in Financial Instruments Regulation (MIFIR).

The Proposal

ISDA's paper proposes that the unique product identifier (UPI), with a limited number of minor changes to transaction fields, can effectively serve as an over-the-counter derivatives identifier for MIFIR transaction reporting. This approach is expected to simplify reporting requirements for market participants while providing the necessary level of detail and transparency required by the FCA.

Benefits of UPI Implementation

The implementation of UPI is anticipated to streamline the reporting process, reduce complexity, and enhance the accuracy of transaction data. By aligning with the FCA's objectives, the UPI can facilitate better regulatory oversight and market transparency.

Conclusion

ISDA's proposal for the adoption of UPI in MIFIR transaction reporting represents a significant step towards improving the efficiency and effectiveness of the reporting regime. The suggested changes aim to benefit both regulators and market participants by providing a more straightforward and transparent reporting framework.

Quelques pistes pour l'intégration opérationnelle dans votre dispositif :

- Évaluer l'impact potentiel de l'adoption de l'UPI sur les systèmes de reporting existants.

- Collaborer avec les équipes de conformité pour assurer une transition fluide vers le nouveau cadre de reporting.

- Former le personnel sur les nouvelles exigences de reporting associées à l'UPI.

- Mettre en place des mécanismes de suivi pour évaluer l'efficacité du nouveau système de reporting.

- Engager un dialogue continu avec les régulateurs pour rester informé des évolutions réglementaires.