FAQ to the topic NID
The National Identification Number (“National ID/NID”) is a personal identification number that lets European regulatory authorities identify contracting financial market participants.
As of January 3rd, 2018 the NORD/LB will be legally bound to report financial instrument transactions (such as the purchase or sale of bonds) that were concluded with you to the national supervisory authority (“BaFin”) immediately after the transaction is confirmed. The European supervisory authorities can identify which financial market participants contract with each other by means of the National ID (NID) which was introduced as a result of the financial crisis.
After the financial market crisis, the G20-Heads of State and Government decided to heighten financial market transparency in order to strengthen the financial system and to make it more resilient for the future. To improve transparency and functioning of the domestic market for financial instruments, a new statutory framework was created that specifies harmonized requirements for the transparency of transactions within the financial markets. The particularities of transactions with financial instruments shall be reported to the competent authority in order to enable the detection of potential cases of market abuse as well as to monitor the fair and proper functioning of markets.
The report extends to all financial instruments that/whose
- are traded on a trading venue,
- underlying asset is a financial instrument that is traded on a trading venue or
- underlying asset is an index or basket of financial instruments that is traded on a trading venue.
The reporting obligation applies irrespective of whether the transaction with one of the listed financial instruments was executed on a trading venue or not. New orders, amendments to existing transactions and the sale or early termination of a financial instrument will be reported. The report requires the National ID for allocating natural persons in the financial market unambiguously.
The National ID is determined by citizenship. Please find the ID that is applicable to you in the attached document:
If your Nationality is not listed in the document, it is necessary that you report your name, surname and your date of birth to the NORD/LB.
If you possess dual EEA-citizenship (European Economic Area), please report the National ID of the country that comes first in the alphabetical order according to ISO 3166-1 alpha-2 Code.
If you possess a European and a non-European citizenship, please report the National ID of the European citizenship.
We kindly ask you to report your National ID to NORD/LB until September 15th, 2017.
Please use the >contact formular to communicate your NID, your name, surname and your date of birth. Please also include your customer number when reporting your NID to NORD/LB.
All our customers who need a National ID received a letter asking them to report their NID to the NORD/LB. If you have not received this letter, we kindly ask you to contact our customer support via the >contact formular or by phone under +49 511 361 – 4032.
Investment firms may not provide services that are made on behalf of the client if the client or authorized representative has not reported his/her LEI or NID to the Investment firm prior to the business transaction.
Please note that we cannot execute your transactions as of January 3rd, 2018 if your NID has not been reported. This applies not only to new contracts but also to changes to and the sale of a financial instrument.