Information regarding the LEI

Information regarding the LEI

The global financial crisis in 2008 showed that there is a lack of transparency and security in the financial markets. On the initiative of the G20 countries, a globally recognized identification system was suggested, which the Financial Stability Council, consisting of representatives of the respective financial supervisory authorities, successfully implemented with the LEI.

The Financial Stability Oversight Council established the Global LEI Foundation (GLEIF). The latter already accredited LEIReg as an official Local Operation Unit in 2017 and is responsible for the supranational oversight of LEI issuing bodies together with the LEI Regulatory Oversight Committee, or LEIROC.

In order to have full access to the financial markets, every independent legal entity has therefore been legally obliged since January 2018 under MIFID II to identify itself by means of an LEI. Only by obtaining this identifier, securities and derivatives can be traded in a legal compliant manner. An unique legal entity identification is intended in particular to prevent risks such as money laundering and market abuse in international financial transactions.

Here you will find a short tutorial on the subject of LEI for illustration purposes.