Swaps -Part 1
Updated: Mar 19
Unique Swap Identifier (USI): In Europe, the equivalent will be the Unique Trade Identifier (UTI), created by the CCP when the specific (unique) derivative contract is cleared. This identifier is attached to the cleared transaction throughout its lifecycle and will be referenced in partial terminations and close-out. Should the portfolio be compressed, a new unique identifier will be issued for the compression transaction by the CCP. At the point of trade the USI/UTI will not be assigned. It is important, therefore, that the customer provides this key piece of information once the trade has been cleared. The USI/UTI is a mandatory data element for subsequent reconciliation or reporting
Unique Product Identifier (UPI): This term is consistent in both the US and Europe and defines the type of swap that has been traded. Various parameters of the swap will be identical for any derivatives contracts that reflect the same UPI.
Legal Entity Identifiers (LEI): Regulators in both the US and Europe will require each party to a trade to be identified in derivatives reporting. Global standardization and issuance of LEIs requires that a global body be set up to monitor and supervise. The Financial Stability Board (FSB) has commenced work on this initiative but it will take some time to become fully established. The global standard for LEIs is expected to define 20 alphanumeric characters that will also identify the entity within an organizational hierarchy.