The Authorized Entity Identifier (LEI) is a 20-character, alpha-numeric code primarily based on the ISO 17442 commonplace developed by the Worldwide Organization for Standardization (ISO). It connects to key reference info that enables clear and unique identification of legal entity identifier entities participating in financial transactions. Every LEI incorporates information about an entity’s ownership structure and thus solutions the questions of ‘who’s who’ and ‘who owns whom’. Simply put, the publicly available LEI data pool will be regarded as a global directory, which enormously enhances transparency within the international marketplace.
The Financial Stability Board (FSB) has reiterated that global LEI adoption underpins “multiple financial stability objectives” resembling improved risk management in firms as well as better evaluation of micro and macro prudential risks. As a result, it promotes market integrity while containing market abuse and financial fraud. Final but not least, LEI rollout “helps higher high quality and accuracy of financial data overall”.
The publicly available LEI information pool is a unique key to standardized information on legal entities globally. The data is registered and repeatedly verified according to protocols and procedures established by the LEI Regulatory Oversight Committee.
In cooperation with its companions in the Global LEI System, the Global Authorized Entity Identifier Basis (GLEIF) continues to deal with additional optimizing the standard, reliability and usability of LEI information, empowering market individuals to benefit from the wealth of data available with the LEI population.
The drivers of the LEI initiative, i.e. the Group of 20, the FSB and plenty of regulators world wide, have emphasised the need to make the LEI a broad public good. The Global LEI Index, made available by GLEIF, enormously contributes to assembly this objective. It puts the whole LEI knowledge at the disposal of any interested party, conveniently and freed from charge.
The advantages for the broader enterprise group to be generated with the Global LEI Index grow consistent with the rate of LEI adoption. To maximize the benefits of entity identification across monetary markets and beyond, corporations are therefore encouraged to engage in the process and get their own LEI. Acquiring an LEI is easy. Registrants simply contact their desirered enterprise associate from the list of LEI issuing organizations available on the GLEIF website.