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

Upcoming Webinar: Best practice approaches to data management for regulatory reporting

13 May 2025 10:00am ET | 3:00pm London | 4:00pm CET Duration: 50 Minutes Effective regulatory reporting requires firms to manage vast amounts of data across multiple systems, regions, and regulatory jurisdictions. With increasing scrutiny from regulators and the rising complexity of financial instruments, the need for a streamlined and strategic approach to data management...

BLOG

8 Best Practices for Regulatory Data Management and Reporting – Upcoming Webinar

Over the past three years, regulatory data management and reporting have presented financial institutions globally with an escalating set challenges. Amongst these, the inadequacy of data governance frameworks has seen significant enforcement actions against tier-1 firms. In a joint OCC/Federal Reserve action in 2024, Citigroup faced a $135.6 million fine for persistent deficiencies in risk...

EVENT

AI in Capital Markets Summit New York

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

AI in Capital Markets: Practical Insight for a Transforming Industry – Free Handbook

AI is no longer on the horizon – it’s embedded in the infrastructure of modern capital markets. But separating real impact from inflated promises requires a grounded, practical understanding. The AI in Capital Markets Handbook 2025 provides exactly that. Designed for data-driven professionals across the trade life-cycle, compliance, infrastructure, and strategy, this handbook goes beyond...