By Dipo Olowookere
An accreditation has been given to Central Securities Clearing System (CSCS) Plc by the Global Legal Entity Identifier Foundation (GLEIF) to perform all Local Operating Unit (LOU) services in Nigeria following an inspection visit by a team of GLEIF representatives.
Owing to its effectiveness in other jurisdictions, the LEI code is a mandatory global requirement that enables market operators to perform capital market functions; this will further deepen the Nigerian capital market and provide veritable identification of organizations, therefore compliance with this requirement.
A Legal Entity Identifier is a 20-character identifier that identifies distinct legal entities that engage in financial transactions. It is defined by ISO 17442. Natural persons are not required to have an LEI; they are eligible to have one issued, however, but only if they act in an independent business capacity.
In a letter dated November 26, 2018 and signed by the CEO of GLEIF, Mr Stephan Wolf, it was stressed that CSCS Nigeria was granted authorization to perform all LOU services as defined in the Master Agreement and its Appendices.
In the letter addressed to CSCS Nigeria, it was said that, “As previously stated, please be assured that the entire GLEIF organization is here to assist and support your efforts and bringing continuous improvement to the entire GLEIS system by facilitating a dedication to ‘best of breed’ practices and methodologies in service and operations”.
In his reaction, MD/CEO of CSCS Nigeria, Mr Haruna Jalo-Waziri, said, “We are delighted at this accreditation by GLEIF. CSCS is the only entity in Nigeria that can perform this function. The Legal Entity Identifier (LEI) would enable firms to strengthen the accuracy, integrity, and aggregation of data across entities and subsidiaries and thus improve counterparty risk data and management, as well as supporting enhanced data modelling and analysis.”
Mr Jalo-Waziri added that, “LEI system will allow precise and accurate regulatory reporting, as well as support the production of data for recovery and resolution planning.”
“This will inherently lead to operational efficiency that would allow for easy reconciliation of data. I encourage all business entities and organizations to acquire the LEI code or apply to CSCS for renewal if they have already registered,” he added.
