LuxCSD Gains Pre-LOU Status For Legal Entity Identifiers

The Central Bank of Luxembourg is sponsoring its central securities depository (CSD) joint venture with Cleastream for a key role in the establishment of the new global legal entity identifier (LEI) system.
By Janet Du Chenne(59204)
The Central Bank of Luxembourg is sponsoring its central securities depository (CSD) joint venture with Cleastream for a key role in the establishment of the new global legal entity identifier (LEI) system.

As part of the global LEI System initiative, which global regulators hope will bolster the safety of the financial system, LuxCSD’s role has been extended from a CSD to a ‘pre-local operating unit’ for Luxembourg. The Regulatory Oversight Committee (ROC) – which brings together global regulators – has allocated the 4-digit prefix #2221 to LuxCSD as the sponsored Pre-LOU for Luxembourg. Following the completion of the ROC endorsement process, LuxCSD will initiate its pre-LEI issuance services.

Private sector and local implementation of the new LEI system will be conducted through local operating units (LOUs), selected on the basis of their local infrastructure knowledge and business practices.

To meet this new mandate, LuxCSD has agreed a strategic collaboration with The Depository Trust & Clearing Corporation (DTCC) to provide the infrastructure for the LuxCSD LEI services to all Luxembourg-based entities. LuxCSD’s local expertise will combine with DTCC’s Global Market Entity Identifier (GMEI) utility, operated in collaboration with SWIFT, to provide all Luxembourg entities – including the financial sector – with a fully integrated and robust financial infrastructure.

Patrick Georg, general manager of LuxCSD says: “Our new mandate to become Luxembourg’s Pre-LOU and the partnership with DTCC’s GMEI utility, the world’s largest and most recognized global Pre-LOU, allows us to serve the needs of local market players in the most efficient way. The new role reinforces LuxCSD’s commitment to strengthen Luxembourg’s financial center in compliance with international standards.”

Pierre Thissen, vice-chairman of the Board of Directors at LuxCSD and head of Market Infrastructure and Payment Systems at the Banque Centrale du Luxembourg (BCL), comments: “As a member of the LEI ROC, the BCL is committed to the financial stability objectives of the global LEI system. With LuxCSD and the GMEI utility, we will now have a state-of-the-art infrastructure in place which will best serve the needs of Luxembourg-based entities.”

William Hodash, managing director, business development at DTCC, adds: “Combining LuxCSD’s local market relationships and expertise with the legal entity reference data validation and the pre-LEI issuance capabilities of the GMEI utility will help drive forward the federated operating model of the Global LEI System and serve Luxembourg clients requiring pre-LEIs in a very efficient manner.”

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