Legal Entity Identifier
Securities Financing Transaction Regulation (SFTR) will require all market participants to have a Legal Entity Identifier (LEI) prior to entering into Securities Financing Transactions (SFTs) in in-scope financial instruments.
The background to this requirement is set out in the factsheet from industry bodies International Swaps Dealer Association ISDA and Global Financial Markets Association (GFMA) here and on the Financial Conduct Authority's (FCA) website here.
If you do not already have an LEI, it is necessary for you to obtain one or to provide a representation that your transactions are excluded from these regulations. If you do not have an LEI, and you do not confirm to us that your transactions are excluded, then you will be unable to trade SFTs with NatWest Markets (NWM) after 11th April 2020.
What activity needs an LEI?
Trading in SFTR eligible security financial instruments will require an LEI.
Which entities need an LEI?
All market participants, whether large financial institutions or small corporates, require an LEI, if they enter into transactions in in-scope financial instruments with EU investment firms.
Which countries does this apply to?
Market participants from all countries who enter into transactions in in-scope financial instruments with EU investment firms will require an LEI.
When do I need an LEI by?
On 11 April 2020 SFTR becomes effective, meaning trading in all SFTR eligible security financial instruments will require an LEI.
How do I get an LEI?
Contact an LEI Issuing Organisation and apply online. Details of who to apply to can be found on the Global Legal Entity Identifier (GLEIF) website.