Classification of a Security

Field 2.42 | Matching Date: 2020-04-01 | Tolerance: None | Agent Lender Data Provision: No>

Status: Best Practice Finalised, Last Updated: 26/04/2021

Field 2.42 | Matching Date: 2020-04-01 | Tolerance: None | Agent Lender Data Provision: No

Description:
CFI code of the security subject of the SFT.

Best Practice:
If Field 2.40 (Type of Asset) is populated with "SECU" then this field shall be populated with CFI code composed of 6 characters and compliant with ISO 10962 Standard.

At least the first 2 characters of the CFI code and the character representing asset class, if applicable for a given instrument, shall be provided, i.e. these characters cannot be "X", which represents not applicable or undefined value. All six characters must however be provided (e.g.: DBXXXX).

Otherwise, it shall be left blank.

As per final text guidance below counterparties can agree to synthesize a code if nothing is available. CFI methodology to be provided here.

ESMA Final Report Reporting under Articles 4 and 12 SFTR: 06 January 2020 :

296. On the contrary, in case of no availability of the CFIs, the industry proposed alternative solutions such as dummy CFI, (ii) not to populate it if it is not available, or (iii) to establish a clear procedure on how to build it correctly by themselves. Since SFTR and its RTS require the CFI according to the ISO 10962 standard, ESMA rejects the aforementioned options as not compliant.

297. Therefore, ESMA recommends, in the case the CFI is not available in ANNA, to address a request to the relevant NNA. The Guidelines have been amended accordingly.

ESMA Guidelines Reporting under Articles 4 and 12 SFTR: 06 January 2020 :

142. Counterparties should report only valid CFIs. If the CFI does not exist in the official sources, then it should be agreed between the counterparties, as the CFI is a reconcilable field. (SFTR-62)