About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

GLEIF Eases LEI Acquisition as Identifier Passes the Half Million Mark

Subscribe to our newsletter

The Legal Entity Identifier (LEI) has passed the half million mark, the Global LEI Foundation (GLEIF) is encouraging the creation of registration agents that will help firms get LEIs, and plans are on the board for mapping services that will link SWIFT BICS and Association of National Numbering Agency (ANNA) ISINs to the identifier. Will this be enough to reach the next milestone of one million issued LEIs and, perhaps, the tipping point that will ultimately make the LEI a key identifier across the financial industry?

While there are no certain answers to these questions, we caught up with GLEIF CEO, Stephan Wolf, to find out how the organisation is promoting the LEI and encouraging take-up, particularly in the run up to the 3 January 2018 compliance deadline for the revised Markets in Financial Instruments Directive (MIFID II) and regulation (MiFIR), both of which require use of the identifier.

With over 503,000 LEIs issued and the half million mark passed early this month, Wolf says hundreds of thousands more LEIs will have to be issued before the end of the year to meet MiFID II and MiFIR requirements in Europe. In the US, all legal entities within the scope of the US Home Mortgage Disclosure Act (HMDA) must obtain an LEI before the regulation takes effect in January 2018.

To help firms get or renew LEIs in time for these forthcoming regulations, the GLEIF is promoting the concept of registration agents, which was initiated a couple of years ago and is now expected to gain traction. An early registration agent was Cusip, but large, global investment firms are now being encouraged to become agents and help their clients get or renew an LEI in time to meet compliance deadlines.

The agents sign contracts with one or many Local Operating Units (LOUs) – essentially LEI issuing organisations with the global LEI system – and funnel LEI information to their clients, perhaps publishing information on their websites to help a legal entity apply for an LEI with an LEI issuing organisation, or perhaps collecting and transmitting information required to verify the existence of an entity applying to an LEI issuer for an LEI.

While the agent scheme is designed to help firms obtain LEIs, Wolf cautions: “The LEI issuing organisations are standing ready to assist legal entities obtain an LEI as well as to collaborate with firms interested in acting as a registration agent. However, we cannot guarantee that LEIs will be issued in time for MiFID II and MiFIR if registration is delayed until the fourth quarter of 2017.”

Also with a view to easing the update and use of LEIs, the GLEIF is working with SWIFT and ANNA to develop standard links between the LEI and BIC codes and ISIN identifiers. Wolf says both BIC and ISIN mapping services are in pilot phase and if successful will be provided as services by SWIFT and ANNA. The GLEIF is also working with XBRL Global to include the LEI in XBRL taxonomy.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: The roles of cloud and managed services in optimising enterprise data management

Cloud and managed services go hand-in-hand when it comes to modern enterprise data management (EDM), but how can the best solutions for the business be selected and implemented to ensure optimal data management based on accurate, consistent, and high-quality data, and delivering improved efficiency, better decisions and competitive advantage? This webinar will answer these questions,...

BLOG

Strategies for Mastering Benchmark Data Management

Benchmark data is fundamental to the functioning of capital markets. Yet, despite its use over many decades, it remains costly to source, complex to manage and difficult to integrate with existing systems, leaving many firms unable to derive full value from the data. It is also perceived by many capital markets participants to be the...

EVENT

Buy AND Build: The Future of Capital Markets Technology, London

Buy AND Build: The Future of Capital Markets Technology London on September 19th at Marriott Hotel Canary Wharf London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

Institutional Digital Assets Handbook 2023

After initial hesitancy, interest in digital assets from institutional market participants has grown over the past three to four years. Early focus inevitably centred on the market opportunities presented by bitcoin and other cryptocurrencies. But this has evolved into a broad acceptance of a potentially meaningful role for digital assets in institutional markets. It’s now...