8 May 2025
📊LEI Requirement for DTC Participants
Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Rules Relating to the Legal Entity Identifier Requirement
Summary
The Securities and Exchange Commission (SEC) announces a proposed rule change by The Depository Trust Company (DTC) to amend its rules, requiring all participants to obtain and maintain a Legal Entity Identifier (LEI). This change aims to enhance data quality, simplify operational processes, and improve risk management in financial transactions among DTC participants.
Agencies
- Securities and Exchange Commission
Business Impact
$$$ - High
The proposed rule change introduces a mandatory legal entity identifier (LEI) requirement for DTC participants, impacting compliance and operational processes. It necessitates obtaining, maintaining, and providing LEIs, which may entail costs and adjustments in business operations. Failure to comply could lead to penalties, emphasizing the need for swift adaptation.