4.4.2.1 Use of identifiers

209. Since the entry into force of EMIR great focus was set on importance of a unique identifier for legal entities involved in derivatives transactions. This was a key requirement to ensure the correct and unique identification of all the relevant entities involved in a transaction.

210. Under the current ITS and RTS on reporting, the reporting counterparty of the contract must be identified with a unique code, the ISO 17442 Legal Entity Identifier (LEI).

211. The other counterparty of the contract (in the perspective of the reporting counterparty) must also be identified with the LEI, unless the other counterparty is a private individual, in which case a client code must be used in a consistent manner to identify that individual.

212. The beneficiary [According to the current RTS on reporting, Annex, Table 1, Field 11, beneficiary is “The party subject to the rights and obligations arising from the contract. […]”] of the contract must be identified in the same manner, i.e. with the LEI if it is a legal entity or with a consistently assigned client code otherwise.

213. The CDE guidance provides that Reporting Counterparty (CP1) and the other counterparty (CP2) shall be identified and recommends the LEI as the identifier. In relation to the identification of the beneficiary of the transaction, the CDE guidance also recommends the identification with the LEI.