Q&A

Question

As a submitter we are having a hard time determining when we should use a CIC code starting with XL vs. XT, when a ISO 3166-1-alpha-2 country code doesn’t exist.

XL - Assets that are not listed in a stock exchange - Identify assets that are not negotiated on a regulated market or on a multilateral trading facility, as defined by Directive 2004/39/CE
XT - Assets that are not exchange tradable - Identify assets that by their nature are not subject to be negotiated on a regulated market or on a multilateral trading facility, as defined by Directive 2004/39/CE.

"Regulated market" means a multilateral system operated and/or managed by a market operator, which brings together or facilitates the bringing together of multiple third-party buying and selling interests in financial instruments - in the system and in accordance with its non-discretionary rules - in a way that results in a contract, in respect of the financial instruments admitted to trading under its rules and/or systems, and which is authorised and functions regularly and in accordance with the provisions of Title III;

"Multilateral trading facility (MTF)" means a multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in financial instruments - in the system and in accordance with non-discretionary rules - in a way that results in a contract in accordance with the provisions of Title II;

Could you please provide some clarifications of what should be coded to XL and XT?  

Additionally, could you please provide a few examples of what would go to XL and XT?

EIOPA answer

This answer is also relevant for the future Solvency II (not only prep. phase).

In the Final report on public consultation No. 14/052 on the implementing technical standards on the templates for the submission of information to the supervisory authorities the following options are foreseen:
- Country: ISO 3166-1-alpha-2 country code - Identify the ISO 3166-1-alpha-2 country code where the asset is listed in. An asset is considered as being listed if it is negotiated on a regulated market or on a multilateral trading facility, as defined by Directive 2004/39/EC.  If the asset is listed in more than one country or the undertaking uses for valuation purposes a price provider which is one of the regulated markets or multilateral trading facility where the asset is listed in, the country shall be the one of that regulated market or multilateral trading facilty used as the reference for valuation purposes.
- XV: Assets listed in one or more than one country -     Identify assets that are listed in one or more countries but when the undertaking uses for valuation purposes a price provider which is not one of the regulated markets or multilateral trading facility where the asset is listed in.
- XL: Assets that are not listed in a stock exchange - Identify assets that are not negotiated on a regulated market or on a multilateral trading facility, as defined by Directive 2004/39/EC.
- XT: Assets that are not exchange tradable - Identify assets that by their nature are not subject to negotiation on a regulated market or on a multilateral trading facility, as defined by Directive 2004/39/CE.

Regarding the difference between “XL” and “XT”, securities that might be subject to negotiation but are not should be classified as “XL”. Only assets that by its nature could never be subject to negotiation should be classified as “XT”, e.g.  cash, property, etc.