The Financial Conduct Authority (FCA) has updated the second Markets In Financial Instruments Directive (MiFID II) rule, amending the legal entity identifier (LEI) rule in relation to its markets data processor (MDP).
The update comes after the European Securities and Markets Authority (ESMA) outlined temporary rules in respect of the LEI.
In December 2017, ESMA issued a delay to the enforcement of LEI requirements for MiFID II, explaining that leading up to the deadline, it had learnt that not all investment firms would succeed in obtaining LEI codes from all their clients by 3 January 2018.
The FCA’s statement released on 2 March 2018, explained that ESMA’s approach requires the FCA to amend the LEI validation rule in its MDP.
The FCA communicated to ESMA and the industry that the change would not be possible before the implementation date of MiFID II.
The FCA said that the revision to the LEI validation rule will be implemented in the MDP on 10 March 2018.
Firms with any outstanding transaction reports where the trade date precedes the LEI registration date, will be able to resubmit it from 12 March 2018.
MiFID II, part of EU legislation, was implemented on 3 January 2018 and stated that all legal entities involved in a trade are required to include their LEIs in European trade reporting.
