ESMA MiFID LEI Identifiers

On Oct. 9, ESMA issued briefing on using LEIs for MiFID II compliance.

  • Follows Dec. 2016, ESMA FAQ on MIFIR data reporting for LEI identifier, see #30343.
  • Issued briefing on Legal Entity Identifier (LEI) ahead of Jan. 3, 2018, MiFID II launch.
  • Urged reporting entities, not to delay in addressing this matter, ahead of new regime.
  • 20-digit code enabling the clear identification of legal entities in financial transactions.
  • Can also be used on cross border basis, through a free, open database updated daily.
  • How to Obtain an LEI
  • Entity should contact their LEI issuing organisation (LEI issuer, local operating unit).
  • Complete LEI issuers list can be found on the Global LEI Foundation (GLEIF) website.
  • Entities not obliged to use LEI issuer from own country, free to choose preferred one.
  • May choose LEI issuer, based on their own specific concerns and costs considerations.
  • GLEIF has introduced registration agent who can help assist in accessing the network
    of LEI issuing organisations responsible for carrying out LEI issuance, related services.
  • After choosing the LEI issuer, the applying entity should submit request to that issuer.
  • Provide legal entity reference data, address, name, legal form, ultimate parent owner
    of entity (with greater than 50% ownership), verify submission, pay for the LEI code.
  • LEI is issued within 24 to 48 hours, depending on LEI issuer, annual maintenance fee.
  • Who Needs an LEI?
  • Investment firms that execute transactions in financial instrument, the client (buyer,
    seller) on whose behalf the firm executes transactions, when client is a legal entity.
  • Client of firm on whose behalf trade venue is reporting, when client is a legal entity.
  • Person making decision to acquire financial instrument, where person is legal entity.
  • Firm transmitting the order, the entity submitting transaction report, and the issuer
    of financial instrument listed and/or traded on trading venue, regardless of location.
  • Effectiveness
  • MiFID II, including the requirement for LEI identifiers, is effective from Jan. 3, 2018.

Regulators EU ESMA; FSB
Entity Types B/D; Bank; Exch
Reference Rp ESMA71-99-613, PR, 10/9/2017, MIDIF/MIFIR, Dir 2014/65, Reg 600/2014, 5/15/2014
Functions Trading; Financial; Operations; Registration; Reporting; Risk; Trade Reporting; Treasury
Countries European Union
Products Banking; Corporate; Equity; Fixed Income
Regions EMEA
Rule Type Guidance
Rule Date 10/9/2017
Effective Date 1/3/2018
Rule Id 35426
Linked to Rule :30343
Report Issue 10/15/2017
Report Section EU

Last substantive update on 10/09/2017