8 May 2025
📊NSCC to Mandate Legal Entity Identifier for Membership Applications
Self-Regulatory Organizations; National Securities Clearing Corporation; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Rules Relating to the Legal Entity Identifier Requirement
Summary
The National Securities Clearing Corporation (NSCC) is proposing a rule change requiring all applicants and current members to obtain and maintain a Legal Entity Identifier (LEI). The objective is to enhance data quality and streamline operational processes, thereby improving risk management and compliance across its participant base.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule change mandates businesses applying for NSCC membership to obtain and maintain a Legal Entity Identifier (LEI). This imposes compliance requirements and potential costs, which may significantly affect members, particularly those currently without an LEI. Non-compliance could lead to fines, adding further financial implications.