Saxo Bank updates institutional clients on LEI code requirements

Maria Nikolova

To comply with the new EMIR and MiFID II reporting requirements, Saxo has to collect valid LEI codes from all corporate clients, legal entities and registered businesses.

Saxo Bank

Saxo Markets, the institutional division of multi-asset trading and investment expert Saxo Bank, has updated its white label clients on the new LEI (legal entity identifier) requirements. These stem from the upcoming changes to EMIR and MiFID II reporting rules – all corporate entities need to provide their LEI by October 1, 2017.

Under the new requiments, Saxo has to collect valid LEI codes from all corporate clients, legal entities and registered businesses. To learn more about LEI, one may visit the websites of LEI ROC and GLEIF.

In case Saxo’s partner is delegating EMIR reporting to Saxo, the bank will also need to be provided with LEIs on all of the partner clients fitting this definition. If the partners are themselves performing the reporting, Saxo recommends to them to equally obtain all the LEIs of their clients fitting this definition.

It usually takes approximately 1-2 weeks to receive an LEI code after registering. One has to renew the code on an annual basis, but Saxo offers a promo code (SaxoLEI2018) to ensure that the applicant does not need to renew until December 2018.

In order to provide Saxo with an LEI, its partners should update this in Saxo Tools for their clients.

In case the LEI is not provided by October 1, 2017, Saxo warns that it cannot perform delegated third party EMIR reporting for this entity’s underlying clients without LEI.

Saxo Bank has already been actively preparing for the new rules. Earlier this year, it took steps to comply with one particular provision of MiFID II that bans investment companies from receiving and keeping any fees, commissions or other payments in money or in kind from (inter alia) investment funds in connection with the provision of discretionary portfolio management to the customers. This particular rule, known as a ban on IB inducements, came into force on July 1, 2017 in Denmark. Saxo Bank A/S, as well as other Danish companies covered by the rule, stopped paying inducement to IBs providing discretionary portfolio management to the customers or independent advice, as of July 1, 2017. The company said back then that it planned to implement a selection of solutions that enable its IBs to work within certain boundaries or move to a non-inducement fee model.

Read this next

Executive Moves

Stash appoints Liza Landsman as CEO to further grow investing app

Stash is an investing and banking app with over 2 million active subscribers. Its subscription plans start at just $3 a month, and offer a range of products including investing, banking, education, and advice.

Institutional FX

Invast Global ramps up its offering with 10 soft commodity CFDs

Sydney-based prime-of-prime provider Invast Global has expanded its offering with the addition of ten soft commodity CFDs, which increases their index and commodity CFD offering to 35 instruments.

Retail FX

FF Simple and Smart Trades says Goodbye to CySEC authorization

The Cyprus Securities and Exchange Commission (CySEC) confirmed that it has wholly withdrawn the Cyprus Investment Firm (CIF) licenses of FF Simple and Smart Trades Investment Services Ltd.

Crypto Insider

Shining the Light in Crypto’s Dark Places

Something changed in regulators’ minds after the November crash of the FTX crypto exchange.

Executive Moves

Financial Commission Adds Sam Low to Dispute Resolution Committee

The Financial Commission (FinaCom PLC), a dispute resolution service that caters to the financial services industry, has appointed Sam Low as the newest member of its Dispute Resolution Committee (DRC).

Digital Assets, Uncategorized

De-facto owner of Bithumb exchange arrested in South Korea

South Korean prosecutors have arrested Kang Jong-Hyun, the anonymous chairman and owner of the country’s largest cryptocurrency exchange, Bithumb, on charges of embezzlement and stock manipulation.

Retail FX

Interactive Brokers volumes snap three-month losing streak

Electronic brokerage firm Interactive Brokers LLC (NASDAQ:IBKR) said its trading volumes rose in January, an indication that investor confidence in the financial markets is rebounding after having been fairly mixed over the past few months.

Digital Assets

VVF invests $5 million in Everscale, a potential Layer 2 solution for Venom blockchain

“For us, this is a strategic investment aimed at the technological development of projects and teams around technologies that we focus on and actively develop. In particular, we are talking about the Venom blockchain project and its ecosystem, which is planned to be launched soon and for which Everscale is a potential Layer 2 solution.”

Institutional FX

FXSpotStream volume ends string of declines on January rebound

Trading volumes on institutional FX platforms surged in January as traders increased their bets on central bankers’ policy with evidence mounting that inflation and economic growth are both losing momentum.