The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

FSB Clarifies Prefixes for Legal Entities Issued Ahead of the LEI and Allocates One for CICIs

The Financial Stability Board (FSB) has clarified the numbering scheme that must be used by organisations issuing entity identifiers that they want to transition into the global LEI system and allocated the first four-character prefix that is designed to support the transition of these identifiers.

The prefix has been allocated to the DTCC and Swift collaboration that has been issuing CFTC Interim Compliant Identifiers, or CICIs, for legal entities involved in OTC derivatives trading on behalf of the US Commodity and Futures Trading Commission since August 2012.

Clarifying its third progress note published at the end of October, which included a breakdown of the 20-character number to be used for LEIs, the FSB reiterates that pre-LEI solutions provided by pre-Local Operating Units (LOUs) that want to transition into the global LEI system when it goes live in March 2013 must adopt the numbering scheme set out for the LEI by November 30. They must also use a four-digit random number allocated by the FSB to prefix identifiers issued ahead of the global LEI system go live in March 2013.

The first prefix to be allocated and published on the FSB website covers CICIs and is 5493. More prefixes will be added if other organisations issuing identifiers want to transition them into the LEI system and can meet the numbering scheme outlined by the FSB before November 30.

Responsibility for allocating prefixes will transfer to the Regulatory Oversight Committee and Central Operating Unit of the global LEI system once they are in place early next year. It is these organisations that will then decide the rule for new four-character prefixes that will be allocated uniquely to each LOU and form part of the 20-character entity identifier used when the global system is up and running.

Related content

WEBINAR

Recorded Webinar: Adverse media screening – how to cut exposure to criminal activity, from money laundering to human trafficking

Screening for adverse media coverage of counterparties presents an incredible opportunity for financial institutions to limit risk exposures and identify bad actors early. It is required by regulations such as the EU’s sixth Anti-Money Laundering Directive (AML 6), and is one of the most effective ways to steer clear of potential connections with sanctioned activity...

BLOG

Monetary Authority of Singapore Plans Shared Data Platform to Combat Money Laundering

The Monetary Authority of Singapore (MAS) plans to introduce a digital platform and enabling regulatory framework that will allow financial institutions to share data on customers and transactions with the aim of preventing money laundering, terrorism financing, and proliferation financing – a means of raising, moving or making available financing, funds, assets or other economic...

EVENT

TradingTech Summit London

TradingTech Summit London will explore how trading firms are innovating in today’s cloud and digital based environment to create flexible, scalable trading platforms to support speed to market and business agility. Leveraging the cloud, AI and ML technologies to get an edge, automate processes and simplify operations in a cost effective way is the name of the game and will share practical insight from practitioners and technology leaders who are innovating and driving forward change in trading operations.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...