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The Legal Entity Identifier (LEI) is a reference data tool to standardize how a counterparty is identified on financial transactions. Its goal is to help improve the measuring and monitoring of systemic risk and support more cost-effective compliance with regulatory reporting requirements. To learn more about LEIs and eligible entities, visit our GMEI Utility Frequently Asked Questions.

Through its suite of ITP products and services, DTCC provides our clients with the ability to register their entity for a LEI (GMEI Utility), communicate their LEI to their counterparties (ALERT) and enrich this information on to their authoritative trade records (CTM), making it available as part of the enriched SSIs which can then be used downstream in the settlement process.

Below is a step-by-step guide on how to maximize usage of your LEI(s) and be in compliance with MiFID II Regulation.

LEI LC Visual1

If you already own a LEI for your legal entity and/or fund, please proceed to Step 2: Populating your LEI in ALERT.

If you need to obtain a LEI, you can register for one directly through the GMEI Utility. The GMEI Utility is designed to provide a single, universal standard identifier to any organization or firm involved in a financial transaction internationally. The Register an Entity for a LEI using the GMEI Utility video provides more detail on the registration process.

 

The ALERT platform contains functionality enabling users to share their LEI with their counterparties. Where this information is populated will depend on whether you are an investment manager or broker/dealer user of ALERT. When a LEI is added to ALERT, ALERT validates the LEI against the GMEI records.

 

For Investment Managers

Investment Managers can provide an acronym-level LEI (Buy Side Legal Entity Identifier) which represents their organization as a legal entity and/or a fund-level LEI (Access Code Legal Entity Identifier), both of which are populated on the General Account Information screen of each ALERT account.

ALERT LEI IM Acct

 

It is possible to run a General Account Data Search report to determine whether a LEI has already been applied to accounts, allowing investment managers to identify gaps in the provision of their LEI data. To run this type of report, follow the instructions below:

    1. When logged into ALERT, select Utilities - Data Search - General Account Data
    2. Populate the Settlement Instruction Controller field with either your own acronym or your Global Custodian's acronym for Global Custodian Direct-managed accounts
    3. Click Search to retrieve all accounts
    4. When the list of accounts is complete, click Save to ExcelALERT LEI DataSearch1
    5. Name the report and click OK
    6. After generating the report, the ALERT platform sends an email confirmng that it is available to view
    7. To view the report, go to Utilities - Reports Run and click on the report name
    8. Check the columns for Access Code Legal Identifier and Buy Side Legal Entity Identifier for previously provided values.

 

For Broker/Dealers

Broker/dealers provide their organization-level LEI within the Settlement Model - Search and Maintain Models screen. 

ALERT LEI BD Model

LEI information added to ALERT will then be enriched onto allocations within the CTM service, which then makes it available for use during settlement processing and for regulatory reporting. This information can be accessed from the CTM User Interface 3.0 by selecting any allocation and View Settlement Instructions and from the CTM User Interface 4.0 by selecting any allocation and View SSI.

The below view from the CTM User Interface 4.0 is from an investment manager's perspective therefore the investment manager's LEI and the fund-level LEI appear in the My Side section, whilst the broker/dealer's LEI appears in the Counterparty section.

ALERT LEI CTM

The CTM service also includes an optional Settlement Notification feature which enables investment managers to achieve straight through processing of matched trades through the automatic creation and transmission of settlement messages in industry standard formats, including SWIFT MT54x messages.

If the investment manager turns on the Third Party Notification LEI subscription option (TLEI) in CTM, their brokers' LEIs will be included in the settlement notification message. In order to turn this subscription option on, Product Administrators will need to submit a case to the DTCC Client Center.

CTMSN LEI

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