63. Unique Trade Identifier (hereafter “UTI”) is a critical data element in the EMIR reports that, together with the LEIs of the counterparties to the derivative contract, play a key role in the pairing and reconciliation process among trade repositories. For this purpose, it is essential that both parties agree on the UTI, and that the UTIs in both reports are strictly identical in terms of structure and content. A pair of counterparties should use a specific UTI for one single contract, and not reuse that same UTI to report any other trade under EMIR. The same principle applies to the UTIs generated for the derivatives reported at position level.

64. In the absence of a global UTI-generating solution, the current RTS on reporting essentially assigns the responsibility for generating the UTI, in case the counterparties fail to agree on it, based on the principle that this responsibility should preferably lay with a regulated entity. The waterfall approach determining the entity responsible for the generation of the UTI is also specified in Article 4a of the current ITS on reporting:

“1. A report shall be identified through a unique trade identifier agreed by the counterparties.

2. Where counterparties fail to agree on the entity responsible for generating the unique trade identifier to be assigned to the report, the counterparties shall determine the entity responsible for generating a unique trade identifier in accordance with the following: