LEI - Legal Entity Identifier

2022-01-10 17:55:06

Make your life easier by applying for an LEI code (Legal Entity Identifier) directly through the Luxembourg Stock Exchange.

What is an LEI code?

The LEI code, a 20-digit unique and universal identifier, was designed to ensure absolute certainty in the identification of legal entities involved in financial transactions. It serves as a basis for establishing counterparty risk monitoring rules and for measuring systemic risk.

Example - LEI code of LuxSE:

22210053OF4F2MYKUV22

Why do I need an LEI code?

In 2012, the G20 approved a unique identifier scheme for financial markets, the ’Global Legal Entity Identifier System’ or ‘GLEIS‘, to facilitate the management and control of risks both by the private sector and by public authorities. This unique identifier of financial markets participants, made up of listed companies and other issuers of financial instruments, is known as a ‘Legal Entity Identifier’ or ‘LEI’ and is based on the ISO 17442 international standard.

The implementation of GLEIS was undertaken by the Financial Stability Board (FSB), which established a framework composed of local entities - ‘Local Operating Units’ or ‘LOUs’ in charge of assigning LEIs - and a central entity - ‘Central Operating Unit’ or ‘COU’, ensuring consistency. All of the aforementioned fall under the scope of a body representing the public authorities known as the ‘Regulatory Oversight Committee’ or ‘ROC’, which ensures compliance with the principles approved by the G20.

Due to this new framework, echoed in MiFID II ^[1] / MiFIR ^[2] and MAR ^[3], the Luxembourg Stock Exchange (LuxSE) is obliged to collect an LEI code from any issuer operating on its regulated market (Bourse de Luxembourg) and on its Multilateral Trading Facility (Euro MTF) and communicate it to the relevant supervisory authorities.

[1] Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directives 2002/92/EC and 2011/61/EU (MiFID II).
[2] Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (MiFIR).
[3] Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (MAR).