Swift and DTCC Collaborate on Interim Identifier Launch

Firms launch CICIs following regulatory approval.

The Depository Trust and Clearing Corporation (DTCC), in collaboration with Swift, has begun issuing CFTC Interim Compliant Identifiers (CICIs) through a new web portal, after gaining approval from the Commodity Futures Trading Commission (CFTC).

The establishment of Legal Entity Identifiers (LEIs) is being seen as a key element for Group of Twenty (G20) moves over reforming derivatives markets. CICIs are designed to be compatible with the ISO 17442 LEI standard approved by the Financial Stability Board, having been assigned to Swift and the DTCC after a competitive proposal process. The assistance of the Association of National Numbering Agencies (ANNA) with regards the registration and validation of entities is a precursor to the federated approach for the operation of LEIs.

"We are delighted to have been selected by the CFTC with Swift to provide CICIs in accordance with the ISO 17442 standard," says William Hodash, managing director, business development at the DTCC. "A standard way of identifying counterparties will help regulators and market participants better aggregate risk and exposures on a global scale."

While the LEI is expected to encompass a broad range of operators within all asset classes, CICIs will be targeted at a much smaller number of participants involved in over-the-counter (OTC) derivatives trading, estimated at less than 50,000. By contrast, LEI registrations are expected to reach around 1.5 million.

The new identifier is required by the CFTC for registered swap dealers and market participants by 12 October 2012, its effective date for final swap recording and recordkeeping rules.