From 1 January 2017, all issuers which are subject to the Transparency Directive (“TD”) will be required to have a Legal Entity Identifier (LEI). The TD applies to all issuers who are listed on a regulated market in the European Economic Area.
The global LEI system is part of the international response by regulatory authorities (including the G20 and the Financial Stability Board) to the global financial crisis. The LEI is designed to enable the identification and linking of parties to financial transactions in order to facilitate the management of counterparty risk and to improve transparency in financial data systems.
LEI’s are global reference codes which uniquely identify each legal entity that engages in a financial transaction. Each LEI comprises a 20 digit alphanumeric code unique to the entity.