LEI
The LEI (Legal Entity Identifier) is a 20-character alphanumeric globally unique legal entity identifier issued under ISO17442 by numbering agencies accredited by the Global Legal Entity Identifier Foundation (GLEIF).
Example of an LEI structure: identifier issued by KDPW:
KDPW has the status of numbering agency accredited by the GLEIF and authorised to issue legal entity identifiers in the Global Legal Entity Identifier System (GLEIS). KDPW follows the GLEIS principles of the issuance and renewal of identifiers and the charging of fees.
KDPW is the only Polish authorised issuer of LEIs.
KDPW issues LEIs to entities in the European Economic Area, Switzerland and Ukraine.
KDPW provides the LEI issuance service by means of an online application.
The following are required to hold an LEI::
legal entities trading in derivatives on regulated markets and in OTC trade;
legal entities trading on cash regulated markets and in cash OTC trade;
members of Central Securities Depositories (CSDs) including Issuers;
parties to repo, sell buy back, buy sell back transactions, securities lending and borrowing, and collateral management transactions.
According to the principles of the Global Legal Entity Identifier System:
the LEI is a global standard;
the LEI structure follows ISO17442 and the ROC guidelines, and the LEI has no embedded country code of the country of issue;
LEIs are only issued by agencies accredited by the GLEIF;
a legal entity may only hold one LEI;
each LEI is linked with the holding entity’s reference data as entered in the public register, and high quality of the data is ensured by the LEI managing agency;
information about issued LEIs and linked reference data is available publicly and free of charge from numbering agencies and the GLEIF.
No LEI No Trade- as of January 3, 2018, under MiFIR all entities across all asset classes will be required to obtain legal entity identifiers (LEIs)
learn more about LEI
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In November 2011, in response to the global financial crisis, G20 mandated the Financial Stability Board - FSB to draw up recommendations and timelines of implementation of a global LEI system: an identification system for all entities which are counterparties to transactions on the financial markets. An international working group appointed by FSB prepared recommendations for the system which were published in June 2012 and approved by G20. The global LEI system is composed of the Central Operating Unit – COU supported by a network of Local Operating Unit – LOU which assign identifiers to market participants around the world and it is managed by the Regulatory Oversight Committee - ROC. The function of the COU is to maintain the standards and consistency of LEI assignment by LOUs. The function of the LOUs is to assign LEIs according to the standards and to validate and modify the data of entities assigned LEIs.
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Until the implementation of the GLEIS standards and procedures, the establishment of the COU and the integration of LOU systems with the global LEI system managed by the COU, institutions seeking the LOU status (pre-LOUs) may issue pre-LEIs according to the LEI structure subject to their authorisation by the ROC.
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According to the applicable procedure, an institution seeking the pre-LOU status applies for a prefix to the ROC through a sponsoring authority (public body participating in the ROC’s authorisation of a local institution as a pre-LOU within the global LEI system) and undertakes to assign pre-LEIs according to the FSB standards. In the next step, the sponsoring authority checks whether the institution complies with the requirements defined for pre-LOUs by the ROC and applies to the ROC for its authorisation as a pre-LOU within the global LEI system.
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The LEI has been indicated by the European Commission and the European Securities and Markets Authority (ESMA) as the preferred identifier of entities subject to the obligation of reporting details of concluded derivative contracts to a trade repository. According to delegated regulations adopted under the European Markets Infrastructure Regulation (EU) No. 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (EMIR), which imposes the reporting obligation, an LEI is required in order to report details of concluded derivative contracts to a trade repository.
The start date of reporting to trade repositories was 12 February 2014.
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The LEI (Legal Entity Identifier) is a unique 20-character alphanumeric code defined under ISO 17442 which identifies entities that are counterparties to transactions on the financial markets. In order to ensure its global uniqueness, the LEI consists of the following characters:
1-4, a four-character prefix assigned by the ROC Secretariat, unique to each LOU (for KDPW_LEI – 2594) 5-6, 2 reserved character - 00 7-18, 12 alphanumeric characters randomly assigned by the LOU according to transparent and sound allocation policies 19-20, 2 check digits under ISO 17442.
To ensure unique identification of entities, each LEI will be associated with the following reference data:
official name of the entity as recorded in the business registry or with the fund manager or otherwise in the entity’s constituting documents; address of the entity of fund manager; administrative address of the entity of fund manager (including country under ISO3166); date of the first LEI assignment; date of the last LEI update; date of and reason for LEI expiry, if applicable.
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The applicable legislation including EMIR and its implementing regulations make the LEI a key requirements in the reporting of transactions in derivative instruments to trade repositories. Therefore, each legal entity that is involved in transactions in derivative instruments, irrespective of its position in the process of concluding and clearing such transactions, will be required to have an LEI. The requirements under EMIR apply not only to financial institutions but to all legal entities which conclude derivative contracts both on regulated markets and in OTC trade. The start date of reporting to trade repositories was 12 February 2014. Therefore, a legal entity should have an LEI at that date.
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LEI - Legal Entity Identifier – a unique 20-character alphanumeric identifier of an entity trading on the global financial markets.
GLEIS - Global LEI System – system of assignment of globally unique identifiers LEI. GLEIS operates through interacting local operating units (LOU) which assign identifiers to market participants around the world within a single system.
ROC - Regulatory Oversight Committee – GLEIS regulatory body appointed by the Financial Stability Board and approved by G-20.
LOU - Local Operating Units – local units authorised to assign LEI within the global system GLEIS and to maintain reference data of entities to which a LEI has been assigned. On the Polish market: KDPW.
COU - Central Operating Unit – GLEIS entity responsible for operational supervision over the LEI system and for maintaining the standards and consistency of LEI assignment by LOUs.
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