FICC Joins LEI Mandate for Bond and Mortgage Settlers
Published Date: 5/8/2025
Notice
Summary
The Fixed Income Clearing Corporation (FICC) is updating its rules to require certain members to get and keep a Legal Entity Identifier (LEI) on file. This affects new applicants and current members involved in mortgage-backed and government securities clearing. The change is effective immediately and helps keep member info clear and up to date, with no new fees involved.
Analyzed Economic Effects
6 provisions identified: 1 benefits, 5 costs, 0 mixed.
LEI Required for New MBSD Applicants
If you apply to become an MBSD Clearing Member or an MBSD Cash Settling Bank Member, you must obtain and provide a 20-character Legal Entity Identifier (LEI) to FICC as part of your membership application. This rule was filed on April 25, 2025 and became effective upon filing.
Existing Members Must Keep Current LEI
Existing GSD Funds-Only Settling Bank Members, MBSD Clearing Members, and MBSD Cash Settling Bank Members must have a current LEI on file with FICC at all times. Members without an LEI will be notified and given 60 calendar days from that notice to obtain and provide an LEI to FICC; the footnote providing the 60-day window sunsets at the end of that period.
Cash Settling Banks Must Provide Sponsored Members' LEIs
Each MBSD Cash Settling Bank Member must obtain and provide LEIs for each of their Sponsored Members; if a Sponsored Member lacks an LEI, the Cash Settling Bank Member will have 60 calendar days from notice to submit those LEIs. The 60-calendar-day footnote for this requirement will sunset at the end of that period.
Typical LEI Registration and Renewal Costs
FICC and DTCC indicate the average cost to register a new LEI is about $71 and the average annual maintenance cost is about $62; registration processing typically takes 24–48 business hours. FICC describes these expenses as minimal.
Noncompliance Can Lead to Disciplinary Fines
Failure to adhere to FICC's LEI requirement could result in disciplinary action, including fines, under the Rules (referenced as GSD Rule 48 and MBSD Rule 38). The filing does not state specific fine amounts.
Rule Effective on Filing; SEC 60-Day Review Window
FICC filed the proposed rule change on April 25, 2025 and the change became effective upon filing; the SEC may summarily suspend the rule at any time within 60 days of the filing (i.e., by June 24, 2025).
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Previous: 2025-07989, 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
Starting now, anyone applying to join or already part of The Depository Trust Company (DTC) must have a Legal Entity Identifier (LEI) on file. This includes new applicants and current members like Participants, Pledgees, and Agents. Also, the Canadian partner CDS will share LEIs for its members with DTC, making sure everyone’s info is up to date—no extra fees or delays, just smoother tracking!
Next: 2025-07991, 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
The National Securities Clearing Corporation (NSCC) is updating its rules to make sure all members and their sponsored participants have a Legal Entity Identifier (LEI) on file. This means anyone applying to join, current members, and certain Canadian participants must provide and keep their LEIs up to date. These changes take effect immediately and help keep the financial system clear and organized without extra costs.