Legal Entity Identifiers (LEIs)
What is a legal entity identifier (LEI)?
The LEI is a 20-character code used to identify entities that enter into financial transactions. It is an initiative endorsed by the Group of Twenty Finance Ministers and Central Bank Governors (G20) and administered by the Global LEI System as a public good.
Who needs to have an LEI?
All counterparties to OTC derivative transactions defined under OSC Rule 91-507 Trade Repositories and Derivatives Data Reporting (the TR Rule) must have an LEI.
In addition, reporting agents, brokers acting as intermediaries, clearing members, electronic trading venues and clearing houses connected to a trade reported under the TR Rule must have an LEI.
Operational divisions and branches are not eligible to receive an LEI and must therefore use the LEI of their immediate parent to comply with the TR Rule.
Natural persons are not eligible to receive an LEI.
Where can you get an LEI?
LEIs can only be obtained from a Local Operating Unit (LOU) endorsed by the Global LEI System’s Regulatory Oversight Committee (ROC). The list of ROC-endorsed LOUs and their contact information is available at http://www.leiroc.org/publications/gls/lou_20131003_2.pdf
What is the process to receive an LEI?
Each LOU has its own process for issuing LEIs but generally, an applicant must supply the LOU with the official name of the entity, the address of legal formation, the address of the headquarters, the name of the business registry and the entity’s ID at that business registry where it was created, if applicable.
If an entity does not wish to apply for an LEI themselves they may request another do so on their behalf but must notify the LOU that the entity has given such permission.
What are the obligations once you have an LEI?
Each entity may only receive one LEI and this identifier must be used for all LEI reporting in each jurisdiction where the LEI is required.