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Circular C245 (ESMA Briefing on the Legal Entity Identifier (“LEI”))

Further to C237 and C238, CySEC wishes to inform Cyprus Investment Firms (“CIFs”), Credit Institutions, Market operators of Trading Venues (“TVs”),  Approved Reporting Mechanisms (“ARM”) (“the Reporting Entities”) and Issuers that, ESMA issued a Public Statement dated 09.10.17 regarding a Briefing on the LEI. The briefing is part of ESMA’s efforts to raise industry awareness and facilitate compliance with the LEI requirements under the (EU) Directive 2014/65/EE (“MiFID II”) prior its launch on 03.01.18. CySEC draws the attention of Reporting Entities to the following paragraph of the briefing:

“  The Markets in Financial Instruments Regulation (MiFIR), introduces requirements for a number of various entities to be identified through the LEI:

  • Investment Firms that execute transactions in Financial Instruments;
  • the clients (buyer, seller) on whose behalf the Investment Firm executes transactions, when the client is a Legal Entity;
  • the client of the firm on whose behalf the TV venue is reporting under Article 26.5 of MIFIR, when the client is a Legal Entity;
  • the person who makes the decision to acquire the Financial Instrument, when this person is a Legal Entity e.g. this includes investment managers acting under a discretionary mandate on behalf of its underlying clients;
  • the firm transmitting the order;
  • the entity submitting a transaction report (i.e. TV, ARM, Investment Firm); and
  • the Issuer of any Financial Instrument listed and / or traded on a TV  ”

CySEC’s expects that: The Reporting Entities and the Issuers are required to familiarise themselves with the aforementioned Briefing and ensure, where relevant, that all entities mentioned above, have an LEI.

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