LEI – GMEI Utility

Paul Janssens – LEI Programme Director March 2014

Benelux Forum

LEI – ISO 17442

LEI Update - March 2014 2

Core LEI Record Attributes – Public database

Record creation date Last update date Record maintenance state Expiry date of the record (when applicable) Entity Status (active, dissolved, etc.) LEI code Registered name (Exact official name - Transliteration) Registered address / Country Headquarters address Local Business Registry identification

Additional Record Attributes

Legal form Ultimate parent LEI (hierarchy) Immediate parent LEI (hierarchy)

Global LEI System

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•International financial market regulators •Upholds governance principles and oversees that global LEI system functions for public interest •Plenary & Executive Committee

• Oversees functioning of the COU, operational integrity and implementation, maintenance of standards specified by the ROC • Appointed & overseen by ROC, composed of stakeholders from financial & non-financial firms

• Ensure application of uniform operational standards and protocols to maintain uniqueness of LEI and high data quality • Manage federation through LOUs • Maintain central logical database

• Provision of LEI functions • Service providers, local business registries, numbering agencies

Local Operating Unit (LOU)

Local Operating Unit (LOU)

Local Operating Unit (LOU)

Central Operating Unit (COU)

Board of Directors

Regulatory Oversight

Committee

Governance

Operations

Globally endorsed LOUs

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Pre-Lou Sponsor Live ROC GMEI Utility CFTC Aug-12 Oct-13

WM Daten Services Bafin Mar-13 Oct-13

INSEE Ministere Economie & Finance Jul-13 Oct-13

Takasbank Capital Markets Board of Turkey Aug-13 Nov-13

London Stock Exchange Unavista Financial Conduct Authority Aug-13 Nov-13

Irish Stock Exchange Central Bank of Ireland Sep-13 Dec-13

National Settlements Depository Federal Financial Markets Services Oct-13 Dec-13

Krajowy Depozyt Papierów Wartoœciowych Polish Financial Supervisory Authority Dec-13 Dec-13

Kamer van Koophandel Autoriteit Financiële Markten Oct-13 Jan-14

National Board for Patents and Registration Finansinspektionen Feb-14 Jan-14

Centrální depozitář cenných papírů Czech National Bank Dec-13 Feb-14

UnionCamere Banca d’Italia Feb-14 Feb-14

Registro Mercantil Banco de Espana Feb-14 Mar-14

CFTC Regulatory requirements (Part 45)

1. Reporting firms must identify themselves and counterparties with certified CICIs

2. Reporting firms must keep records of transactions 3. Reporting firms must report transactions to registered swap data

repositories • Effective since 10 April 2013 • Single side reporting

– Major Swap Participants / Swap Dealers

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6

ESMA EMIR - Requirements • Central role for ESMA

– With Local / National supervision – Moving OTC Derivatives to centralised clearing (CCPs) – Standardisation of OTC Derivatives contracts – Increased market transparency via reporting to Trade Data

Repositories • Effective since 12 February 2014 • Dual side reporting • Financial and non-financial corporations

LEI Update - March 2014

http://www.esma.europa.eu/page/European-Market-Infrastructure-Regulation-EMIR

European Banking Authority

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http://www.eba.europa.eu/risk-analysis-and-data

• Capital Requirements Directive – CRD IV • Supervisory Reporting • Implementing Technical Standards (ITS) • Scope

– European financial institutions – Counterparties

• Recommendation = use of LEI • Timeline

– Mar 2014 – Dec 2014

DTCC/SWIFT Utility

• International Financial Industry (GFMA) selected DTCC/SWIFT bid

• CFTC selected DTCC/SWIFT solution for CICI • Launch of CICI Utility at www.ciciutility.org • ROC Global Endorsement of CICI Utility • Re-branding of CICI Utility to GMEI Utility at

www.gmeiutility.org • Transition into Global LEI System

LEI Update - March 2014 8

8 Jul 2011

24 Jul 2012 21 Aug 2012 3 Oct 2013 24 Jan 2014

Utility Statistics (12 Mar)

• Statistics – Total records 125,773

• Regional split – US 64,007 50.9% – EU 39,678 31.5%

• BE 2,880 • LU 9,256 • NL 1,771

– Total countries 160 • All Endorsed LOUs

– Total records 220,100 – GMEI Utility 57% – KVK NL 3% (7,400)

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10 LEI Update - March 2014

What does it mean for me? Registration

• Strategy – Responsibility for registration and maintenance – Local >< Group – Entities, subsidiaries, funds, …

• Operations – Create account – Search database – Certify pre-filled record – Challenge record quality – Record ownership / payment

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What does it mean for me? Reporting

• Obligations / Reporting requirements – Responsibility within firm – Analysis by market (Dodd-Franck, EMIR, ….) – Tresholds – Data / systems impacts

• Operations – Market data and counterparty data – Self-reporting / delegate reporting / responsibility – Connection with Trade Repository – Tracking, Storage, Reporting – Back loading

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SWIFT Solutions for Trade Reporting

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You Reports (XML, FpML,

csv, …)

Automatic file transfer:

FileAct

Confirmation copy:

FIN/FINInform

Trade repository

• DTCC Global TR • LSE Unavista • REGIS-TR • ….

• Re-use your SWIFT connection • Cost-effective, automated file transfer • High security: authentication, electronic

signature, encryption, non-repudiation

You

MT3xx

Trade repository

• REGIS-TR

Counterpart

• Re-use your SWIFT connection • No need to produce report for initial

submission • Confirmations containing trade details

are copied to trade repository

• BIC to LEI • Bank Directory Plus • Bankers World Online

SWIFT Solutions for Reference data management

Deutsche Bank AG

Deutsche Bank Sociedad Anonima

Espanola Deutsche Bank Österreich AG

Deutsche Bank (Chile) S.A

Deutsche Bank Luxembourg s.a

Deutsche Bank AG, filiale Luxembourg

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Useful links

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www.swift.com/lei

swiftref.swift.com/bic-lei-directory

www.gmeiutility.org

www.leiroc.org

Thank You grazzi efcharisto obrigada

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LEI Update - March 2014 16