Classification of a Security Used as Collateral

Field 2.79 | Matching Date: 2020-04-01 | Tolerance: None | Agent Lender Data Provision: Yes>

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

Field 2.79 | Matching Date: 2020-04-01 | Tolerance: None | Agent Lender Data Provision: Yes

Description:
CFI code of the security used as collateral.

Best Practice:
If Field 2.75 (Type of Collateral Component) is populated with "SECU", a CFI code (x6 characters) compliant with ISO 10962 Standard shall be provided, else it should be left blank.

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.

See Final report - Guidelines on reporting under Articles 4 and 12 SFTR - 06 January 2020 ESMA70-151-2703

4.14 Reporting of CFI for a security used as collateral.

When a security is used as collateral, the CFI code of that security should be reported in fields 42 and 79 of the table on Loan and Collateral data. This field does not apply to commodities. Counterparties should always use official sources for the CFI. For this purpose, the data issued by the relevant National Numbering Agency (NNA) should be used. Further information is provided by ANNA in the following this link , or by the relevant NNA of the security.

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-99)