LEI acceptance with Place of Trade (TRAD) and Place of Clearing (CLEA) - Update

23.10.2020

Note: This announcement, originally published on 24 June 2020 and updated on 27 July 2020, is updated to provide information on a change to the date of introduction of the new functionality. This date has now been confirmed as follows. Changes have been highlighted.

This update can be read in conjunction with Announcement A20114.

LuxCSD1 informs customers that from

8 February 2021

it will support the LEI format for both TRAD (Place of Trade) and CLEA (Place of Clearing).

Impact on customers

CLEA is already supported by LuxCSD under the BIC11 format.

As of 8 February 2021, LuxCSD will support the LEI format for both TRAD and CLEA.

Instructions and reporting

The LEI can be instructed through a new option L in all MT540, MT541, MT542 and MT543 instructions in field 94L::TRAD or CLEA in mandatory sequence B.

The LEI will be reported through a new option L in all MT536, MT537, MT544-47, MT548, MT578 and MT586 in field 94L::TRAD or CLEA in mandatory sequence B.

Details for place of trade and place of clearing

A. Place of trade

Sequence B

:94B::TRAD//“Data Source Scheme(DSS)/Place Code/Narrative” with format :4!c/[8c]/4!c[/30x]

:94L::TRAD//“LEI” with format :4!c//18!c2!n (new)

Note: The place of trade can be used to indicate the Market Identifier Code (MIC). This information is relevant for cash penalties where a reduced rate can be applied if the market is an SME growth market (please refer to the functional specifications on cash penalties for more information).

In order to indicate the MIC, the DSS should not be present and the place code should be “EXCH” followed by the narrative mentioning the MIC. For example, :94B::TRAD//EXCH/XNYS.

Note: Only the MIC allows customers to benefit from lower penalty rates for SME markets, while the LEI does not.

Customers can input up to two places of trade via Xact Web Portal or Xact via SWIFT. The field must not be present more than twice in the sequence. When the field :94a::TRAD// is repeated, only one occurrence must be with the L format option.

B. Place of clearing

Sequence B

:94H::CLEA//”BIC11” with format :4!c//4!a2!a2!c[3!c]

:94L::CLEA//”LEI” with format :4!c//18!c2!n (new)

Customers can input up to two places of clearing via Xact Web Portal or Xact via SWIFT. The field must not be present more than twice in the sequence. When the field :94a::TRAD// is repeated, only one occurrence should be with format option L.

Further information

Detailed technical specifications about the reporting of cash penalties, net amounts and the notification of the buy-in or cash compensation results will be communicated at a later stage.

For further information, customers may consult the CSDR Customer readiness and FAQ on the LuxCSD website or contact LuxCSD Client Services or their Relationship Officer. The Xact via SWIFT User Guide will be updated in due course.

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1. LuxCSD refers to LuxCSD S.A., registered office at 42, Avenue J.F. Kennedy, L-1855 Luxembourg, registered with the Luxembourg Trade and Companies Register under number B-154.449.