LuxCSD Kick Starts LEI Service

LuxCSD’s Legal Entity Identifier (LEI) service for Luxembourg-domiciled entities and investment funds is now operational and accessible via luxcsd.com.

The Regulatory Oversight Committee (ROC) – a committee of global regulators – has endorsed the CSD as a pre-local operating unit (LOU) to issue LEIs.

The ROC endorsement is a prerequisite for using Luxembourg LEIs for reporting financial transactions on an international level rather than just for domestic transactions. All EU counterparties entering into derivative trades are required to have an LEI to meet the reporting obligations under the European Market Infrastructure Regulation (EMIR).

It has entered into a strategic collaboration with the Depository Trust & Clearing Corporation (DTCC) to provide the infrastructure for the LuxCSD LEI services in order to fulfill its new mandate.

The Legal Entity Identifier (LEI) is a 20-digit, alpha-numeric code that connects to key reference information that enables clear and unique identification of companies participating in global financial markets.

For regulators, the LEI helps to increase their systemic risk analysis capabilities and the aggregation of risk exposures, and thus financial stability.

The ROC oversees the GLEIS so that “there is a unique identifier for each entity that registers, and that there are reliable, while flexible, operational principles and standards applied to the origination and maintenance of an LEI.”

Pre-LOUs (Local Operating Units) are the local implementers of the global system within a federated operating model. The ROC-endorsed pre-LOUs will become LOUs when the Global LEI Foundation implements the COU (Central Operating Unit) and the ROC declares the Global LEI System fully operational.