KDPW among the first entities in the world accredited to issue the LEI codes
The Central Securities Depository of Poland (KDPW), which has been issuing the Legal Entity Identifier (LEI) codes since 2013, has now received the accreditation of the Global Legal Entity Identifier Foundation (GLEIF), the body responsible for ensuring the operational integrity of the Global LEI System.
The LEI code is a unique number allowing global identification of entities operating in the financial markets. Currently, the KDPW manages a data base of over 7,000 identification codes for entrepreneurs from Poland and 21 other countries.
- For the KDPW obtaining the accreditation of GLEIF means above all being able to continue assigning the codes, which ability forms part of our integrated portfolio of services supporting the functioning and development of the Polish financial market, as provided in our corporate strategy. At the same time, we observe a growing demand for the LEI codes assigning service. An important element which drives this demand are EU regulations which obligate entities operating in the financial market to obtain this code. At the same time, I would like to thank GLEIF for fruitful co-operation at every stage of our accreditation process – said Iwona Sroka, President of the KDPW.
- Accreditation is the process by which GLEIF evaluates the suitability of organizations seeking to operate within the Global LEI System as issuers of LEIs and custodians of LEI reference data. Becoming a member of the Global LEI System via GLEIF accreditation is a globally recognized designation of commitment to data quality and customer service. GLEIF looks forward to continuing the excellent cooperation with KDPW in its role as an accredited LEI issuer – said Stephan Wolf, CEO of GLEIF.
The need to obtain and use the LEI codes by legal entities stems from EU legislation, including such acts as EMIR, REMIT, MiFID II / MiFIR, CSDR and SFTR. Implementing the LEI standard under the aforesaid legal requirements is designed to increase transparency and security of the financial markets. Currently, the LEI codes must be held by all legal entities and natural persons engaged in commercial activity involving derivatives transactions which must be reported to the transactions depositories. Moreover, a wider group of entities, including those concluding transactions in the spot market, as well as issuers will be soon concerned by the LEI code obligation.
The KDPW provides the LEI codes allocation service via its on-line service https://lei.kdpw.pl available 24/7.
LEI (Legal Entity Identifier) code is a 20-character, alpha-numeric identifier consistent with the ISO17442 standard, developed by the International Organization for Standardization. The LEI connects to key reference information that enables clear and unique identification of legal entities participating in global financial markets and/or in financial transactions.
GLOBAL LEI SYSTEM
In 2011, the Group of Twenty (G20) called on the Financial Stability Board (FSB) to provide recommendations for a global Legal Entity Identifier (LEI) and a supporting governance structure. This led to the development of the Global LEI System which, through the issuance of LEIs, now provides unique identification of legal entities participating in financial transactions across the globe.
Global Legal Entity Identifier Foundation (GLEIF)
Established by the Financial Stability Board in June 2014, the Global Legal Entity Identifier Foundation (GLEIF) is a not-for-profit organization created to support the implementation and use of the Legal Entity Identifier (LEI). GLEIF is headquartered in Basel, Switzerland. GLEIF services ensure the operational integrity of the Global LEI System. GLEIF also makes available the technical infrastructure to provide, via an open data license, access to the full global LEI repository free of charge to users. GLEIF is overseen by the LEI Regulatory Oversight Committee, which is made up of representatives of public authorities from across the globe.