REMIT Reporting Services and Solutions - July 2015 updated March 2016
Unfortunately the lack of a mandated solution meant confusion and issues for EMIR. Under REMIT ACER have tried
to solve this issue by:
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Mandating that all OMP trades use the UTI generated by the OMP
Promising an algorithm to be used for bilateral trades, based on the trade data
By mandating the algorithm, any market participant not using it MUST agree it with the counterparty. Failure to do
so will result in the non-complaint party’s trade being rejected. This prevents larger counterparties “muscling in” on
who generates the code and how.
The algorithm is to be found in Annex IV of the TRUM. There are two algorithms: one for table 1 and one for table 2.
Each uses certain trade attributes as parameter to come up with the UTI after using a hashing algorithm. While the
algorithm does not work on every occasion it is likely to be widely adopted.
Copyright 2016 – ETR Advisory Ltd and Commodity Technology Advisory LLC
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