DTCC recently announced the termination of their vendor relationship with Refinitiv, operators of Avox Limited, and ceased to receive Avox’s data feed on 28 February 2021 as a result.
What does this mean?
Prior to 28 February 2021, DTCC used the Avox International Business Entity Identifier (AVID) assigned by Avox Limited to import the corresponding entity name and identifiers based on the data feed received when submitting trades under ASIC and MAS regulation. This enrichment of data is not required by ASIC or MAS however it was provided to DTCC clients as a value-added service. It is now no longer available.
Why has DTCC terminated this service?
Underpinning the termination of DTCC’s vendor relationship with Refinitiv is the significant reduction in the use of AVIDs as the global community shifts towards the adoption of an Legal Entity Identifier (LEI) only policy. Additionally, there is no regulatory driven reason to provide enrichment for alternative identifiers.
What is the impact of this change?
DTCC has stated that it will continue to accept AVIDs into their system despite their termination with Refinitiv however the data source will not be enriched going forward. For known accounts, DTCC will still have the data feed available but post 28 February 2021 any records with unseen AVIDs will be passed on in an ‘as is’ format directly to ASIC or MAS where permitted. Both ASIC and MAS have been informed of the cessation of this service.
How does this affect you?
If you previously relied on DTCC to populate the entity name of counterparties based on the AVID provided in the trade data, you now need to ensure they are populated in your trade data that is submitted either to DTCC directly or your reporting delegate.
For all reporting entities, we suggest you consider the following recommendations:
- ensure that all of the entity names provided are correct, complete and up-to-date; and
- start transitioning your clients that are currently using AVIDs to using LEIs.
ASIC is shifting toward an LEI-only policy as noted in its recently published Consultation Paper 334 which proposes the revision of the current ASIC Rules so that LEIs will be the only acceptable identifier of counterparties. This change has come about as part of ASIC’s effort to align with the rules of other jurisdictions (such as ESMA).
If you have any questions or wish to discuss, please do not hesitate contact us.
Angela works in our Sydney office. At TRAction, she provides regulatory support to our clients, monitors changes in the worldwide regulatory environment relating to trade and transaction reporting, assists with business development and client onboarding as well as development of PR and marketing strategies. Angela has several years of experience working in legal and compliance for financial services companies. She previously practiced in a leading boutique financial services law firm in Sydney as a solicitor with a focus on licensing, compliance, AML/CTF and M&A. Angela has a double degree in Actuarial Studies and Law from the Australian National University and is admitted as a solicitor in Australia.