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LEI Deadline Formally Extended by ASIC to 1 April 2019

We have been notified that ASIC has signed the extending relief instrument this morning, which formally extended the deadline for obtaining LEIs to 1 April 2019. The instrument also provides a few minor changes to ASIC Corporations (Derivative Transaction Reporting Exemption) Instrument 2015/844.

With regard to the Exchange-Trade Derivatives (“ETD”) definition request, it is still being settled by ASIC. We will provide a further update to you once we are provided with more information.

At this stage, we suggest our clients to:

1. Continue dialogue with non-individual clients about obtaining LEIs during the temporary period, and
2. Start reporting it where the LEI is available.  Review the “How do I provide this information to TRAction for reporting?” section below.

What do I need to do from 1 April 2019?

You will need to report the LEI (instead of internal platform identifier) as part of your trade information for your all clients which are non-reporting counterparties to a trade and are not individuals (Non-Individual Client). A non-reporting counterparty, as defined in the ASIC Derivative Transaction Rules (Reporting) 2013, is any party to an OTC derivative transaction that is not required to report. In the case of individual clients, reporting requirements will remain unchanged and only a client code assigned by the Reporting Entity needs to be reported.

How do I provide this information to TRAction for reporting?

In order to comply with the new reporting requirements, we suggest our clients adopt one of the following options:

If you are reporting to us through a direct MT4/MT5 API connection:

1. populate the MT4 user field called “ID number” with the LEI;
2. if “ID Number” is already in use, please contact us for an alternative.

If you are reporting to us through a daily upload CSV:

1. add a column “LEI” after the column of “Login_name”; or
2. replace the existing value in the column “login” by LEI numbers.

Whichever method you choose to use, please notify us in order for our team to switch over the use of the extra field.

What is an LEI?

LEIs are required for the purpose of identifying counterparties that are legal entities (including those in trusts) in ASIC transaction reports. LEIs are a unique 20 digit alphanumeric code which offers standard credibility and aids in managing the identity of an eligible entity in any business transaction. According to the Global LEI Foundation (GLEIF) over 1,150,000 LEIs have been issued.

How to obtain an LEI

LEIs are issued by Local Operating Units (LOU) accredited by the GLEIF. A list of all Local Operating Units can be found on the GLEIF website.

If you have any questions about LEI requirements, feel free to contact us.

Sophie Gerber

Sophie Gerber

Sophie has worked with some of Australia’s largest financial services organisations in compliance, legal and operational roles. She has also worked with small businesses to provide tailored solutions with a strong understanding of business practicalities as well as obligations to regulators. This strong understanding allows Sophie to effectively engage with not only large financial organisations but also with small businesses. Sophie has an in depth knowledge of compliance and legal obligations for financial services businesses having vast experience in the financial services sector. Sophie continually works with a range of companies in the financial services industry, including OTC derivatives brokers.