Luxembourg’s central securities depository LuxCSD has been accredited by the Global Legal Entity Identifier Foundation (GLEIF) to become an official Local Operating Unit (LOU) for issuance of Global Legal Entity Identifiers (LEI). This accreditation underlines the suitability of LuxCSD to operate as an issuer within the global LEI system.
The use of LEIs ultimately aims at bolstering the safety of the financial system and the demand for LEIs plays a growing role in light of supranational regulations such as MiFID II, MiFIR and CSDR. Based on the principles established by the Regulatory Oversight Committee (ROC), GLEIF implements LEI standards and oversees the LOU activities for the issuance and management of LEIs and the publication of the Legal Entity Reference Data.
Legal Entity Identifiers are increasingly used in Europe and around the world to further boost transparency in the banking, investment fund, brokerage and insurance sectors. They are in strong demand for uniquely identifying counterparties for regulatory purposes including reporting of transactions, identifying participants and issuers. In the private sector LEIs help to evaluate risk, improve the accuracy of financial data and form part of KYC compliance.
Organizations authorized to issue LEIs to legal entities, so-called LOUs, supply registration, renewal and other services, and act as the primary interface with registrants for LEIs. The status granted is a globally recognized designation of commitment to data quality and customer service.
Patrick Georg, General Manager of LuxCSD, said: “LEI remains the industry standard to provide open and reliable data for unique legal entity identification management. The accreditation strengthens the commitment of Luxembourg’s financial centre to compliance with international standards. We are convinced that this step will also generate advantages for the wider business community.”
The author of this article is solely responsible for the content published.