The Legal Entity Identifier (LEI) is a 20-character, alpha-numeric code based on the ISO 17442 standard. It was developed by the International Organization for Standardization (ISO).
The LEI is a key reference number that enables clear and unique identification of legal entities who are participating in financial transactions. This helps facilitate the management of counterparty risk.
Each LEI contains information about an entity’s ownership structure.
The LEI data pool can be regarded as a global directory, which greatly enhances transparency in the global marketplace.
The Financial Stability Board (FSB) promotes it adoption globally because of “multiple financial stability objectives” such as improved risk management in firms as well as better assessment of micro and macro prudential risks. As a result, it promotes market integrity while helping to containing market abuse and financial fraud. LEI rollout also “supports higher quality and accuracy of financial data overall”.
The LEI data pool is publicly available and is a unique key to standardised information on legal entities globally. The data is registered and regularly verified according to protocols and procedures established by the LEI Regulatory Oversight Committee.
In cooperation with its partners in the Global LEI System, the Global Legal Entity Identifier Foundation (GLEIF) continues to focus on further optimizing the quality, reliability and usability of LEI data, empowering market participants to benefit from the wealth of information available with the LEI population.
The drivers of the LEI initiative are the Group of 20 (G20), the FSB and many regulators around the world, have emphasized the need to make the LEI a broad public good.
The benefits for the wider business community to be generated with the Global LEI Index will grow in line with the rate of LEI adoption. To maximize the benefits of entity identification across financial markets and beyond, firms are encouraged to engage in the process and get their own LEI.
Euronext Dublin is accredited by the Global Legal Entity Foundation (GLEIF) and can provide LEI services to over 90 jurisdictions which are recognised by the Regulatory Oversight Committee (ROC).