Regulatory Use of the LEI > Commodity Futures Trading Commission (CFTC)
CFTC Requirements for LEIs
The US Commodity Futures Trading Commission (CFTC) now requires each counterparty engaging in swaps transactions to be identified with a Legal Entity Identifier (LEI). As a GLEIF-accredited global LEI Issuer, RapidLEI can help you discover, register, and renew client LEIs to meet CFTC rules and minimise risk.
Why is the CFTC mandating the use of LEIs?
Many regulators around the globe are now mandating the use of LEIs in transactions and reporting, in order to create transparency in financial markets.
“The CFTC believes accurate LEIs are essential for the CFTC to use swap data to fulfill its regulatory responsibilities. Mandating LEI renewal assures reference data for each LEI will be updated on a periodic basis and, thereby, assuring the highest level of accurate information. In addition, LEIs have already been broadly adopted in swaps markets and their widespread use has shown promise by reducing ambiguity engendered by market participants previously using a variety of non-standard reporting identifiers.”
(Source)
Who needs an LEI for CFTC?
All significant swaps’ financial entities now need an LEI to identify themselves in all recordkeeping and swap data reporting:
- swap execution facilities (SEFs)
- designated contract markets (DCMs)
- derivatives clearing organizations (DCOs)
- swap data repositories (SDRs)
- swap counterparties*
*If a swap counterparty is not eligible to obtain an LEI (as determined by the GLEIF), they will be identified with an alternative identifier as prescribed by the CFTC.
What about LEI renewal?
To keep an LEI active, it must be renewed every year (unless a multi-year LEI is purchased). The CFTC requires that the LEI must also be renewed for:
- the Swap Dealer (SD)
- major swap participants (MSPs)
- swap execution facilities (SEFs)
- designated contract markets (DCMs)
- derivatives clearing organizations (DCOs)
- swap data repositories (SDRs)
Visit our LEI Renewal FAQ for information on how to renew an LEI for CFTC.
CFTC rules on LEIs
CEA (Commodity Exchange Act)
- CFTC 17 CFR Parts 3, 32, and 33 Commodity Options
- CFTC Form TO
- CFTC Form 102 Identification of “Special Accounts” for futures commissions merchants, clearing members and advisors
- CFTC Ownership and Control Reports, Forms 102/102S, 40/40S, and 71; Final Rule
- CFTC Swap Data Record Keeping and Reporting Rule (Parts 45 46)
- CFTC 17 CFR Parts 45, 46 and 49
- [Proposed] CFTC 17 CFR Part 45 Amendments to Swap Data Recordkeeping and Reporting Requirements for Cleared Swaps
- [Proposed] CFTC 17 CFR Part 49 RIN 3038-AE44 Proposed Amendments to the Swap Data Access Provisions of Part 49 and Certain Other Matters
Obtaining CFTC LEI Codes
With RapidLEI, swap dealers can discover, verify, renew, and manage client LEI codes at scale. This can be done ad-hoc as needed, or more holistically by integrating LEI registration into customer onboarding services.
RapidLEI makes obtaining, registering and renewing Legal Entity Identifiers for CFTC rules faster, simpler and more cost effective. Our automated systems register and renew LEIs in minutes, and our Management Platform makes managing multiple LEIs effortless.
As a GLEIF accredited LOU, we offer the only LEI issuance API that supports the discovery, registration, management, and renewal of client LEIs. The API is available to both Registration Agents and Validation Agents.
