4.2.3.1 Background

89. Clear and consistent identification of the products traded in the derivative transactions is one of the foundations of the efficient use of the derivative data. It enables the regulators to aggregate the reported transactions into desired groupings according to the products characteristics and in this way efficiently monitor exposures and risks related to distinct products or product categories.

90. It is crucial that the product identifier used in derivatives reporting fulfils a series of conditions, such as uniqueness, persistence, consistency, neutrality, reliability, open source, scalability, accessibility, availability at a reasonable cost basis, appropriate governance framework [Section 3 of the Technical Guidance on UPI describes in more detail desired technical principles for the UPI.].

91. Furthermore, the global aggregation of OTC data will require the adoption of a globally unique product identifier (UPI) by the relevant jurisdictions. This is one of the key commitments made by G20 leaders with respect to the reforms of OTC derivatives markets [Implementing OTC Derivatives Market Reforms].

4.2.3.2 Current requirements regarding the identification of products under EMIR