In a move aimed at strengthening transparency in derivative markets, a new reporting requirement has been finalised for participants operating in India’s over-the-counter segment.
Reserve Bank of India has issued final guidelines mandating the use of a Unique Transaction Identifier (UTI) for all over-the-counter (OTC) derivative transactions from January 1, 2027. The requirement applies to all market participants involved in such trades.
Earlier, the draft circular on UTI for OTC derivative transactions in India had proposed that the instructions would come into effect from April 1, 2026. The revised timeline in the final circular is intended to give market participants additional time to build and test the required technical and operational capabilities.
UTI has been globally recognised as a critical data element for reporting OTC derivative transactions. Its adoption is aimed at enabling policymakers and regulators to gain a comprehensive and consolidated view of the OTC derivatives market across products and participants.
Currently, all transactions in OTC markets for Rupee interest rate derivatives, forward contracts in Government securities, foreign currency derivatives, foreign currency interest rate derivatives, and credit derivatives are reported to the trade repository managed by Clearing Corporation of India Limited. These transactions are housed under the CCIL Trade Repository framework.
The central bank said it has now decided to formally mandate the use of UTI for all the above-mentioned OTC derivative transactions. Alongside this decision, it has also issued a detailed framework outlining the implementation process for UTI usage in the OTC derivatives market.
The new framework is expected to bring greater consistency in transaction reporting, improve data quality, and enhance regulatory oversight of derivative activity in India. Market participants are expected to align their systems and processes within the extended timeline to ensure compliance by the revised effective date.
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