The Central Bank of Luxembourg is sponsoring LuxCSD for a key role in the establishment of the new Global Legal Entity Identifier (LEI) System which global regulators hope will bolster the safety of the financial system.
As part of the Global LEI System initiative, LuxCSD’s role has been extended from a Central Securities Depository to a ‘Pre-Local Operating Unit’ for Luxembourg.
The Regulatory Oversight Committee (ROC) – which brings together global regulators – has allocated the 4-digit prefix #2221 to LuxCSD as the sponsored Pre-LOU for Luxembourg. Following the completion of the ROC endorsement process, LuxCSD will initiate its Pre-LEI issuance services.
Private sector and local implementation of the new LEI system will be conducted through Local Operating Units (LOUs), selected on the basis of their local infrastructure knowledge and business practices.
To meet the new mandate, LuxCSD has agreed a strategic collaboration with the Depository Trust & Clearing Corporation (DTCC) to provide the infrastructure for the LuxCSD LEI services to all Luxembourg-based entities.
The combination of LuxCSD’s local expertise with DTCC's Global Market Entity Identifier (GMEI) utility, operated in collaboration with SWIFT, will provide all Luxembourg entities - including the financial sector - with a fully integrated financial infrastructure.
Patrick Georg, general manager of LuxCSD, says: “Our new mandate to become Luxembourg’s Pre-LOU and the partnership with DTCC’s GMEI utility, the world’s largest and most recognised global Pre-LOU, allows us to serve the needs of local market players in the most efficient way. The new role reinforces LuxCSD’s commitment to strengthen Luxembourg’s financial centre in compliance with international standards.”
Pierre Thissen, vice-chairman of the board of directors at LuxCSD and head of market infrastructure and payment systems at the Banque Centrale du Luxembourg (BCL), says: “As a member of the LEI ROC, the BCL is committed to the financial stability objectives of the global LEI system. With LuxCSD and the GMEI utility, we will now have a state-of-the-art infrastructure in place which will best serve the needs of Luxembourg-based entities.”
William Hodash, managing director, business development at DTCC, says: “The collaboration between DTCC and LuxCSD on the provision of pre-LEIs is consistent with the missions of both organisations as operators of financial market infrastructures, including CSDs. Combining LuxCSD’s local market relationships and expertise with the legal entity reference data validation and the pre-LEI issuance capabilities of the GMEI utility will help drive forward the federated operating model of the Global LEI System and serve Luxembourg clients requiring pre-LEIs in a very efficient manner.”