The CFTC extended its designation of the Depository Trust and Clearing Corporation ("DTCC") and Society for Worldwide Interbank Financial Telecommunication's ("SWIFT") joint venture ("DTCC-SWIFT") as the providers of legal entity identifiers ("LEIs"). The one-year extension is intended to allow enough time for the global LEI system to become fully operational. The CFTC specified that the extension permits certain registered entities and swap counterparties to use identifiers issued by DTCC-SWIFT, or by any other pre-Local Operating Unit that has been endorsed by the Regulatory Oversight Committee, that indicate they are (i) globally acceptable, and (ii) issue globally acceptable LEIs.
CFTC Rule 45.6 provides that each counterparty to a swap will be identified in all recordkeeping and swap-data reporting pursuant to part 45 by means of a single LEI. The CFTC emphasized that accreditation of DTCC-Swift is expected in the near future.
The CFTC noted that the designation will expire on July 24, 2017, and may be terminated by the CFTC with three months' notice upon (i) the establishment of the global LEI system, or (ii) DTCC-SWIFT's exit from the global LEI system.
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