Digital Token Identifier to monitor crypto-derivative risk across G20

finextra.com:

A division of Etrading Software (ETS), DTIF’s scope is broadening to provide public authorities with greater support in identifying digital asset risks globally, and to instil further transparency in the crypto derivative trading market. Until now, derivatives reporting has focused solely on traditional financial instruments.

The DTI has been introduced as an underlier to two derivative identifiers: the Unique Product Identifier (UPI) and the International Securities Identification Number for OTC derivatives (OTC ISIN). The UPI is a G20-mandated identifier for derivatives reporting – enabling regulators to identify the build-up of systemic risks in OTC derivatives markets. The OTC ISIN, a more granular identifier, is used to detect and investigate market abuse.

As of 29 April 2024, crypto-derivatives that fall under the EU’s European Market Infrastructure Regulation (EMIR) must use DTI as an underlier to the UPIs and OTC ISINs reported to a trade repository. This enables EU regulators to extend the monitoring of derivative risk to digital assets.

The adoption of the ISO 24165 DTI standard underscores the regulatory commitment to establishing a globally recognised identification standard for the growing market of crypto-asset-referenced financial instruments.

Sassan Danesh, DTIF, commented: “We are extending the use of the DTI across the G20 jurisdictions, including in the UK, Australia and Singapore later in 2024 and Japan in early 2025.”

The DTIF is a non-profit division of ETS – a regulatory data provider that builds market infrastructures for the new digital economy.