Mitigating Risk

Brexit: Important Considerations for Institutional Trade Processing Clients

By Matthew Stauffer, DTCC Managing Director and Head of Institutional Trade Processing | Feb 25, 2019

Brexit: Important Considerations for Institutional Trade Processing Clients - Matt-Stauffer
Matthew Stauffer, DTCC Managing Director and Head of Institutional Trade Processing

As the Brexit deadline moves closer, we appreciate our clients will be facing some complex situations. For example, to maintain full access to EU markets and clients, many UK firms may need to set up new legal entities in the EU post-Brexit.

As such, we would like to remind clients of some activities to consider:

Requesting a New CTM Acronym: In some cases, the bifurcation of middle office operations will require new CTM™ BICs. DTCC ITP is committed to fulfilling new CTM BIC requests as soon as possible. Clients wishing to request new CTM BICs should contact their Relationship Manager directly or reach out to us via ServiceCentral.

Sourcing of Additional LEIs: MiFID II mandates that all European clients and any global client trading European securities have a Legal Entity Identifier (LEI) for reporting purposes. Depending on your post-Brexit business plan, you may need additional LEIs to support your EU and UK activity. The GMEI® Utility*, DTCC’s LEI solution, is a global service enabling organizations with multiple legal entity subsidiaries and affiliates to register and maintain reference data for all of their entities in a single location. The GMEI Utility offers multiple payment methods with standard LEI fulfillment averaging 48-72 hours** and features a premium Same Day Service for those needing an expedited LEI turnaround.

Updating Your LEI Information in the ALERT Database: The ALERT® platform currently provides clients with the ability to store LEIs. When an LEI is populated within ALERT and enrichment is provided through CTM, the LEI will automatically be populated to the CTM message, where clients can view, retrieve, store and use for their regulatory reporting. Populating LEIs into the ALERT database accurately may alleviate the need for clients to obtain an additional ALERT acronym due to Brexit.

DTCC is committed to supporting you every step of the way as you navigate your post-trade operations in a post-Brexit environment. Please visit www.dtcc.com/brexit for the most up to date information regarding DTCC’s recommendations and resources to assist with your Brexit preparations.

*Business Entity Data (BED) B.V., a wholly-owned subsidiary of DTCC, owns and operates the GMEI utility legal entity identifier (LEI) services within the federated Global LEI System (GLEIS).

**Fulfillment time-frames are subject to volume.


 

Brexit: Important Considerations for ITP Clients

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