March 7, 2013

CFTC Provides Operational Guidance Concerning Maintenance of CICIs Issued Through Assisted Registration

Washington, DC – The Utility designated by the Commodity Futures Trading Commission (CFTC) to issue legal entity identifiers or LEIs (currently known as CFTC interim compliant identifiers or CICIs) has requested operational guidance from the CFTC concerning maintenance of CICIs issued through assisted registration with explicit permission from the entity registered. The Commission has provided the following operational guidance to the Utility.

As the Commission made clear in its Q & A on Start of Swap Data Reporting issued on October 10, 2012, under the Commission’s swap data recordkeeping and reporting rules:

• Each counterparty to any swap subject to the jurisdiction of the Commission must be identified in all recordkeeping and all swap data reporting by a single LEI (currently known as a CICI).
• Because CICIs are required for recordkeeping as well as for reporting, swap counterparties subject to the Commission’s jurisdiction must obtain a CICI by the compliance date applicable to them, whether or not they are the reporting counterparty for any swaps.
• If a CICI has been obtained for a counterparty through third-party registration, that counterparty should (1) validate or certify its own CICI with the CICI Utility by the compliance date applicable to it, and (2) be responsible for maintaining that CICI thereafter, including re-certification of the CICI at appropriate intervals.

The CICI Utility now creates CICIs only on the basis of self-registration, which includes assisted registration with explicit permission. In this context, CFTC rules have the same effect and apply the same principles described in the October Q & A, as follows:

• CFTC rules require an entity subject to CFTC jurisdiction to both (1) certify its own CICI if the CICI was not obtained through self-registration, and (2) maintain its own CICI after it is issued, including re-certification at appropriate intervals.
• Self-registration for a CICI constitutes self-certification of that CICI. An entity does not need to self-register and also self-certify when the CICI is issued. However, an entity receiving a CICI through self-registration must maintain its own CICI after it is issued, including re-certification at appropriate intervals.
• Since self-registration includes assisted registration with permission, an entity receiving its CICI through assisted registration with permission does not need to also self-certify the CICI when it is issued. Registration for a CICI through assisted registration constitutes certification of that CICI.
• Since all entities identified by CICIs must maintain their own CICIs after they are issued, entities receiving CICIs through assisted registration with permission are responsible for maintaining their own CICIs after they are issued. This includes re-certification at appropriate intervals.

Last Updated: March 8, 2013