The Unique Product Identifier (UPI) is a code used for OTC derivatives that are reported to a trade repository – their purpose is to help identify the relevant OTC derivative. As of 29 April 2024, UPIs are required under EU EMIR Refit. It will also be required under UK EMIR Refit which goes live on 30 September 2024, followed by ASIC Rewrite and MAS Rewrite on 21 October 2024.
Reporting entities are able to obtain a UPI by searching the web service of the solely designated UPI service provider (by Financial Stability Board) – ANNA DSB. ANNA DSB offers various user types at various costs with access to different services and information.
At TRAction, we will retrieve or create UPIs for our clients where they do not already have them from their counterparty.
The UPI is issuer agnostic i.e. the UPI is not attached to the generating entity, such that the generating entity can obtain the UPI that was previously issued, for its own reporting requirements.
There are few ways of extracting the UPIs in ANNA-DSB. This can be done through the following methods:
- Option 1 – by attributes with a drop-down menu of asset classes, instrument types, products and CFI codes.
- Option 2 – by using specific details of the instrument, such as the underlying ISIN and CFI codes.
When using option 2, a search of ISIN ‘US0378331005’ would return more than 200 results. However, using a more detailed search may present 1 result if we specify that the CFI code is “JESXCC”.
At TRAction, when performing a UPI search on behalf of our clients, we get most of the data directly from our clients symbol table, based on product attributes:
For FX:
- Notional Currency 1
- Notional Currency 2
- Settlement Currency 1
- Product classification
For CMD:
- Product classification
- Base product
- Sub product
- Additional sub product (A new field introduced in EMIR Refit)
- Reference rate (This can only contain one of the values listed on this page.)
For EQT:
- Underlying Identification
- Product classification
For EQT Index:
- Product classification
- Underlying Identification
- Name of the Underlying Index (when Underlying Identification is not available, based on this page).
As you can see this is a complicated process which is still evolving and improving. It’s for this reason that we recommend that in most circumstance you leave the retrieval of UPIs up to TRAction unless you are given the specific UPI by your counterparty in a timely manner and you would prefer us to use that UPI to improve pairing and matching.
If you need assistance on generating or retrieving a UPI, please do not hesitate to contact us.
