LEI and CICI update

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13 Δεκ 2013 (πριν από 3 χρόνια και 6 μήνες)

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© DTCC

LEI and CICI update


Andrew Douglas
(awdouglas@dtcc.com
)

November 2012

© DTCC

Objective of LEI


Enable consistent and accurate identification of all legal entities
that are parties to financial transactions.


Benefits



For regulators: Strengthen systemic risk capabilities by allowing
accurate, consistent, reliable and timely analysis of position and
transaction reports across all legal entities, jurisdictions, and asset
classes.



For institutions: Increase the ability of financial institutions to
accurately report to regulators, interact with other firms and to
improve their risk management capabilities.




What is an LEI?

2

© DTCC

Support for LEI

3

EU Internal Market Commissioner Michel Barnier
-

Speech of February
10
th

2011


We must also work together in a common identification of market players. This is an area
where the U.S. is already committed, but that requires
global

standards.



G
-
20


Cannes Summit Final Declaration
-

November 4
th

2011


We support the creation of a
global

legal entity identifier (LEI) which uniquely identifies
parties to financial transactions. We call on the FSB to take the lead in helping coordinate
work among the regulatory community to prepare recommendations for the appropriate
governance framework, representing the public interest, for such a
global

LEI by our next
Summit
.”


IOSCO
-
CPSS



Requirements
for OTC derivatives data reporting and
aggregation’
-

August 24
th

2011


A system of LEIs would be an essential tool for aggregation of OTC derivatives data, and
[IOSCO] recommends
the expeditious development and implementation of a standard
LEI
.”

© DTCC

FSB Recommended LEI Infrastructure

4

Local
Operating
Unit (LOU)

Local
Operating
Unit (LOU)

Local
Operating
Unit (LOU)

Central
Operating
Unit (COU)

Board of
Directors

Regulatory
Oversight
Committee

Governance

Operations


International financial market regulators


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Ov敲獥敳s瑨a琠杬潢慬g䱅L syst敭 晵fc瑩潮猠f潲
pub汩挠楮t敲敳t


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Ov敲獥敳s晵fc瑩潮楮朠潦 COUⰠ,p敲a瑩潮慬t
楮t敧物瑹r慮d 業p汥l敮ta瑩潮t m慩at敮慮c攠
潦 st慮d慲d猠獰sc楦楥i b礠瑨攠ROC


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st慫敨潬d敲猠晲潭o晩n慮c楡氠☠&潮晩n慮c楡氠
晩牭r


䕮獵s敳e瑨攠慰p汩la瑩潮t潦 un楦潲m 杬潢慬g
standards /protocols


Manages federation through LOUs


䵡楮t慩a猠愠c敮瑲慬a汯杩g慬adat慢慳攠潦
楤in瑩晩敲猠慮d c潲r敳e潮o楮i ref敲敮c攠data


䱯L慬apr潶楳i潮o潦 慬氠a䕉 晵fc瑩潮猠睨楣h 瑨攠
ROC det敲e楮i猠d漠o潴敥d t漠o攠
c敮瑲慬楳敤
.


Service providers such as local registries and
numbering agencies

4

© DTCC

Global LEI (FSB)


timeline

5

How?


Implementation Group of regulators very active since mid August 2012


PSPG group of 200 industry experts active across 9 work streams

1.
Governance & Legal


3 sub
-
groups

2.
Operations


4 sub
-
groups

3.
Ownership and Hierarchy data


2 sub
-
groups

Key
Deliverables

Infrastructure
in Place

2013 & Beyond

Q1 2013

Q4 2012

Q3 2012

October 2012

Legal framework
for ROC & COU
complete

Q4 2012


Q1 2013

Implementation group
develops standards &
operational system for COU

Ongoing

Maintain
standards for
connection of
LOUs to network

Ongoing

LOUs
internationally
connected to
COU

March 2013

Central Operating
Unit (COU) in place,
system is self
standing

November 2012

Regulatory Oversight
Committee (ROC)
charter endorsed by
G20

End of 2012

ROC formed
from regulators
internationally

© DTCC

CFTC


key dates

6

CFTC CICI codes


July 24
th

CFTC order identifies DTCC
-
SWIFT as CICI issuer for 2 year term


CICI Utility portal goes live August 19
th


Ongoing engagement in FSB LEI programme


CFTC reporting


SWAP definition finalised August 13
th


12
th

October
2012** Applies to
SD/MSP for
Credit
and Interest
Rates asset classes


11
th

January 2013
.

Applies to
SD/MSP for
Commodities
, Equities and
FX


12
th

April 2013
.

Applies for
all
non
-
SD/MSP
for all asset
classes


**CFTC Q&A on Sep 10
th

2012

..the
swap dealer registration regulations go into effect on October 12, and entities that have more than the de
minimis level of dealing (swaps entered into after Oct 12) must register by no later than two months after the end of
the month in which they surpass the de minimis level. By way of example, if an entity reaches $8 billion in swap
dealing the day after October 12, then the entity would have to register within two months after the end of October,
or by December
31.

© DTCC

CICI Utility

7

New web portal is
www.ciciutility.org



O
pen access to
Search

&
view


New CICI
Registration



self and 3
rd

Party


Full & Delta
file downloads
daily (ftp also available)


Certify

existing CICI’s


Challenge

existing CICI’s


24,000 CICI’s migrated from test files to live database

Operations and customer service teams in place

© DTCC

CICI Utility
-

Sample Record

8

© DTCC

CICI Solution

IN



Legal Entities
including Funds


Ultimate parent
(primary parties only)


Registered address


Multi language
registration


Full & delta file
download and FTP

OUT



Individuals, Branches,
Divisions, Sub
-
accounts


Immediate parent


Operating
&
settlement addresses


Other Relationships
e.g. IM to fund


Cross
-
referencing
LEI
to other identifiers



TO FOLLOW



Bulk registration
(Buy Side)


Headquarters
Address


Expiry date & reason


Registry name and
number

9

© DTCC

C
ontacts and resources

10

Mark Davies

DTCC

mdavies@dtcc.com

CICI Customer Service

CICI Utility

customerservice@ciciutility.org

CICI Web

portal

CICI Utility

https://www.ciciutility.org

LEI Further reading

GFMA

http://www.gfma.org/lei/