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:
- Continue dialogue with non-individual clients about obtaining LEIs during the temporary period; and
- Start reporting it where the LEI is available.
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.
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 works in our Sydney office. She is co-CEO and founder of TRAction and focuses on assisting clients in Australia, Europe and Asia to meet their regulatory requirements with trade and transaction reporting solutions as well as development of the best execution platform. She has extensive experience in providing compliance and legal services to Australia’s financial services and credit participants. Her vast experience coupled with in-depth knowledge of business practicalities, regulatory compliance and financial services laws allow her to effectively and efficiently engage with clients.