A subsidiary of Etrading Software,the DTIF announced its plans to deploy the Digital Token Identifier (DTI) for regulatory reporting of digital asset derivative trades across the G20 nations.

DTIF aims to enhance support for public authorities in identifying global digital asset risks and promoting transparency in the crypto derivative trading market.

This move marks a significant expansion of DTIF’s scope, which previously focused solely on traditional financial instruments for derivatives reporting.

The DTI, introduced as an underlier to two derivative identifiers – the Unique Product Identifier (UPI) and the International Securities Identification Number for OTC derivatives (OTC ISIN) – will enable regulators to identify systemic risks in OTC derivatives markets and detect and investigate market abuse with greater granularity.

Effective April 29, 2024, crypto-derivatives under the EU’s European Market Infrastructure Regulation mandate must use DTI as an underlier to the UPIs and OTC ISINs reported to a trade repository. This step allows EU regulators to extend their monitoring of derivative risk to encompass digital assets.

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The adoption of the standard underscores regulatory commitments to create globally recognised identification standards for the burgeoning market of crypto-asset-referenced financial instruments.

According to Sassan Danesh, who represents DTIF, said they are extending the use of DTI across the G20 jurisdictions, which includes the UK, later this year.