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.
- MiFID II, including the requirement for LEI identifiers, is effective from Jan. 3, 2018.
||EU ESMA; FSB
||B/D; Bank; Exch
||Rp ESMA71-99-613, PR, 10/9/2017, MIDIF/MIFIR, Dir 2014/65, Reg 600/2014, 5/15/2014
||Trading; Financial; Operations; Registration; Reporting; Risk; Trade Reporting; Treasury
||Banking; Corporate; Equity; Fixed Income
Last substantive update on 10/09/2017