About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

LuxCSD Becomes a pre-Local Operating Unit in the Global LEI System

Subscribe to our newsletter

LuxCSD, a central securities depository jointly owned by the Central Bank of Luxembourg and Clearstream International, has become Luxembourg’s pre-Local Operating Unit (LOU) which, with the help of DTCC, will issue Legal Entity Identifiers (LEIs) within the Global LEI System.

LuxCSD is sponsored as a pre-LOU by the Central Bank of Luxembourg and has been allocated a four-digit prefix for the LEIs it issues by the Regulatory Oversight Committee of the Global LEI System. This gives it pre-LOU status and allows it to issue LEIs, although it says it will not start to issue entities in Luxembourg with LEIs – which it has yet to name – until it has been endorsed by the ROC. In a country where many entities do business in international markets, the endorsement process is particularly important for LuxCSD as LEIs issued before endorsement can be used only at a national level, while those issued after endorsement can be used on an international scale.

LuxCSD hopes to achieve endorsement and become fully operational in June, with DTCC providing infrastructure for its LEI service. The company considered whether to build, buy or partner to fulfil its mandate as a pre-LOU and decided to work with DTCC in a collaboration that leaves LuxCSD with responsibility for its LEI issuing service and customer relationships, and requires DTCC to process requests for LEIs and handle issues such as legal entity reference data validation and the avoidance of LEI duplication.

Patrick Georg, general manager of LuxCSD, explains: “Our mandate to become Luxembourg’s pre-LOU and the partnership with DTCC’s Global Market Entity Identifier utility, the world’s largest and most recognised global pre-LOU [formerly the CICI utility], allows us to serve the needs of local market players in the most efficient way.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: The future of KYC and AML: How to tackle the challenges and gain the opportunities of perpetual KYC

Perpetual Know Your Customer (or pKYC) could be a game changer for client onboarding, due diligence and financial crime compliance. Moving on from today’s reactive approach that conducts client KYC processes at onboarding and typically at one, three and five year intervals, pKYC takes a proactive approach, creating a digital KYC profile and dynamically refreshing...

BLOG

Knowledge Graph Technology – A Game Changer for Data Management in Capital Markets

Early identification of use cases that provide a focal point for the implementation of knowledge graphs is essential to successful projects, according to a panel of experts speaking at a recent A-Team Group webinar. The webinar discussed the benefits and pitfalls of implementing knowledge graphs, including how to build, sustain and maintain them, use cases,...

EVENT

RegTech Summit London

Now in its 7th year, the RegTech Summit in London will bring together the RegTech ecosystem to explore how the European capital markets financial industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Evaluated Pricing

Valuations and pricing teams are facing a much higher degree of scrutiny from both the regulatory community and the investor community in the glare of the post-crisis data transparency spotlight. Fair value price transparency requirements and the gradual move towards a more harmonised accounting standards environment is set within the context of the whole debate...