Q&A

MiFID II

What is MIFID II and its objective?

MiFID II is the Markets in Financial Instruments Directive II. It aims to enhance efficiency and transparency in the European financial markets and increase protection for investors.

What is the background of MiFID II?

The revision of MiFID I and the introduction of MiFIR together are called MiFID II. MiFID I entered into force in 2007 and shortcomings to MiFID I were exposed in the wake of the financial crisis. The European Commission would like to enhance both supervisory activities and transparency via an updated MiFID regime.

What is the scope of products in MiFID II?

MiFID II applies to so called financial instruments and structured deposits. OTC derivatives (except FX Spot transactions), bonds, equities and structured products are all financial instruments and thus fall under the scope of MiFID.

National Client Identifier List

What is a National Client Identifier List?

For all natural persons who trade in financial instruments under MiFID II Rabobank needs to obtain the National Client Identifier (NCI).

Each Member State has specified which NCI should be used for its citizens. For instance, for Dutch nationals the passport number need to be recorded. The complete list of NCI specifications per nationality can be found here.

Legal Entity Identifier (LEI)

What is a Legal Entity Identifier (LEI)?

The LEI (Legal Entity Identifier) is a globally acknowledged code which will make it possible for regulators to identify different counterparties for a transaction globally. You will need a LEI to comply with reporting obligations under EMIR and MiFID II. In order to increase transparency in financial markets, a LEI system was created by the G-20 in cooperation with the Financial Stability Board. This system makes it possible to identify the contracting parties to financial market transactions worldwide and make it easier for regulators to recognize possible systemic risks at an early stage.

LEI for EEA Clients based in the Netherlands

The Chamber of Commerce issues LEIs in the Netherlands. The following website allows you to register for a LEI.

LEI for EEA Clients outside the Netherlands

Outside the Netherlands a number of Local Operating Units (LOUs) will become or are already available. A list of LOUs is available via this link.

For more information or guidance regarding LEI, please visit the Global Markets Entity Identifies (GMEI) Utility website or contact your local regulator.

What is Rabobank’s LEI code?

LEI: DG3RU1DBUFHT4ZF9WN62

What does the LEI registration process look like?

Each LEI issuer has its own process but generally speaking it is a relatively “fast & easy” online application process. It takes four steps to obtain a LEI Code.

  1. Choose an official LEI issuer.
  2. Provide the required information on the issuer’s website.
    This includes legal name, legal address, headquarters address, entity status, and the entity's legal form. 
  3. Pay the registration fee.
    There are both an initial registration fee and an annual maintenance fee. These charges are dependent on the LEI issuer. The price for initial registration varies between the different LOUs. For example, a registration in the Netherlands through the Chamber of Commerce will cost approximately EUR 65 and the yearly maintenance fee is approximately 2/3 of the registration fee. 
  4. The LEI issuer validates the information and completes the registration.
    Depending on current workload it usually takes approximately five to ten business days from the time the request for LEI assignment is received to completion of the process.