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

It’s Official – No Further Delays in the Use of LEIs Under MiFID II

Subscribe to our newsletter

The European Securities and Markets Authority (ESMA) confirmed today that the six-month delay to the mandate requiring the use of Legal Entity Identifiers (LEIs) for all issuers and counterparties to transactions under MiFID II will not be extended.

The initial delay from January 3, 2018, when MiFID II came into play, to July 3, 2018 was designed to provide a smooth introduction of the use of LEIs as ESMA decided that not all firms requiring the identifiers had succeeded in obtaining them in time for the MiFID II start.

ESMA and National Competent Authorities (NCAs) say they have since observed a significant increase in the LEI coverage of both issuers and clients. Based on these observations, ESMA and the NCAs have concluded that there is no need to extend the initial six-month period.

Instead, NCA activity with respect to LEI requirements is shifting from monitoring to ongoing supervisory actions. To ensure a high degree of supervisory convergence and the full application of MiFID II, ESMA and the NCAs are coordinating the development of an appropriate and proportionate common supervisory action plan focused on compliance with the LEI reporting requirements under respective regulatory provisions.

Commenting on the ESMA decision from an industry perspective, Larry Thompson, DTCC vice chairman, says: “ESMA’s announcement that no additional forbearance will be afforded to market participants means they need to make it a priority to apply for their LEIs ahead of the July 2 expiry date. Firms outside Europe that transact in European markets must also put the necessary measures in place to comply with the MiFID II LEI requirement by this time, otherwise they won’t be able to trade with European counterparties.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: How to ensure employees meet fit and proper requirements under global accountability regimes

Fitness and proprietary requirements for employees of financial institutions are not an option, but a regulatory obligation that calls on employers to regularly assess employees’ honesty, integrity and reputation, competence and capability, and financial soundness. In the UK, these requirements are a core element of the Senior Managers and Certification Regime (SMCR). They are also...

BLOG

A-Team Group Names Winners of its Data Management Insight Awards – USA 2024

The waiting in over! A-Team Group has announced the winners of its Data Management Insight Awards – USA 2024. The awards, which acknowledge leading data management solutions, services and consultancy to capital markets participants across the USA, were presented by Andrew Delaney, president and chief content officer at A-Team Group. The winners were named at...

EVENT

Data Management Summit New York City

Now in its 15th year the Data Management Summit NYC brings together the North American data management community to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

Corporate Actions USA 2010

The US corporate actions market has long been characterised as paper-based and manually intensive, but it seems that much progress is being made of late to tackle the lack of automation due to the introduction of four little letters: XBRL. According to a survey by the American Institute of Certified Public Accountants (AICPA) and standards...