The obligation to have an LEI stems from Regulation EMIR (Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories). EMIR requires all financial and non-financial counterparties to report the conclusion of trades in all derivatives and any changes thereto to trade repositories (TRs). The report must be submitted no later than the trading day following the conclusion of the derivative. In order to report, it is necessary that each legal entity or natural person conducting business is assigned an LEI that identifies the entity. This is a unique 20-digit alphanumeric identifier that allows for the correct reporting of derivatives transactions. It is assigned according to the ISO 17442 standard 'Financialo Services - Legal Entity Identifier (LEI)'. Each person can be assigned only one LEI, globally.
How do I apply for an LEI?
Each entity (client) applies for an LEI individually via a web form. The authorised person fills in all mandatory data or other optional data via the online form (available here: https://www.cdcp.cz/lei/sluzby-lei/ ).
Once the data has been submitted, an automatic check of the entered data will take place. After successful submission, the client will receive information on how to make payment for the LEI allocation, including the variable symbol. After payment of the fee, the LEI will be issued in accordance with ISO 17442. The entitled person will receive electronically information about the assigned LEI and an invoice for the payment already made.
Extension of LEI
The LEI is valid for one year. 4 weeks prior to expiry, the client will receive information from the CDCP about the obligation to pay the annual fee.
Fees
The allocation of LEIs is not a revenue generating activity and is only to cover the costs of operation and implementation. It can be paid in CZK or EUR. The allocation fee is 1875 CZK (70 EUR). The annual maintenance fee is 1375 CZK (50 EUR). Changing the data is free of charge. If the fee is not paid, the LEI will be invalidated and cannot be used for reporting.
Who reports
Before signing the contract (RS IS), the Client shall indicate whether or not he/she authorises the Company to report the details of the conclusion, modification or termination of the Futures Trade he/she has entered into with the Company to the ROU (the Client shall tick EMIR yes/no in the RS). It is always advantageous for clients to have the Company do the reporting for them. There is no charge for the Company's reporting.
The Company reports for the client (EMIR yes)
This mandate can only be granted in relation to all Futures Transactions entered into between the Client and the Company since the mandate became effective. Details are set out in the GTC. The Client shall disclose the LEI to the Company upon signing the Master Agreement (RS IS), no later than 14 days after the conclusion of the first Futures Trade. A condition for concluding futures trades is the disclosure of his/her LEI to the Company. If the Client authorises the Company to report on his behalf and fails to disclose his LEI, the Client is requested to complete the LEI. If the Client fails to provide the LEI within 14 days of the first trade, no further futures trades will be entered into with the Client.
Client self-reports (EMIR does not)
By doing so, the client does not consent to the Company reporting trades and reports the trades himself. Even in this case the client is required to provide the LEI to the Company. However, the client is required to self-report trades directly to the ROU. The fees associated with direct reporting are EUR 3,800 (indicative amount) for registration as a reporting entity. This does not exempt the client from registering the LEI (see above). The reporting is a structured form according to predefined rules and is in CSV format. It is a very detailed spreadsheet that contains several dozen columns.
The obligation to have an LEI stems from EMIR (Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories). EMIR requires all financial and non-financial counterparties to report the conclusion of trades in all derivatives and any changes thereto to trade repositories (TRs). The report must be submitted no later than the trading day following the conclusion of the derivative. In order to report, each legal entity must be assigned an LEI that identifies the entity. This is a unique 20-digit alphanumeric identifier of the legal entity that allows for the correct reporting of derivatives trades. It is assigned according to the ISO 17442 standard 'Financialo Services - Legal Entity Identifier (LEI)'. Only one legal entity can have one LEI, worldwide.
For any further questions, please contact our helpline on +420 498 777 770 or via email info@akcenta.eu.