(b) International Standard for the Identification of Legal Persons. The legal entity identifier used in all records and exchange data messages required in this Part shall be issued in accordance with ISO 17442, Legal Entity Identifier (LEI), and shall comply with ISO 17442, Legal Entity Identifier (LEI) published by the International Organization for Standardization. Reference data is all identification and relationship information, as defined in the standards of the Global Legal Entity Identifier System, legal entity, or person to whom a legal entity identifier is assigned. The Legal Entity Identifier (LEI) is a globally unique identifier for legal entities involved in financial transactions.  It is also known as the LEI code or LEI number and is used to identify legal entities in a globally accessible database. Legal entities are organizations such as companies or government agencies involved in financial transactions. One person cannot obtain an LEI.  The identifier is used in regulatory reporting to financial regulators and all financial companies and funds must have an LEI. The publicly accessible LEI database is a unique key to obtaining standardized information on legal entities worldwide. Data are recorded and regularly reviewed in accordance with protocols and procedures established by the Regulatory Oversight Committee.
Learn more about how to get a legal entity identifier. The OFR has worked with other U.S. regulators to integrate the LEI concept into accounting requirements frameworks and will continue to do so. In the United States and Europe, the use of the LEI was first used in swap regulation. Since August 2012, DTCC and SWIFT have been offering a preliminary global legal entity identifier solution known as the CFTC Interim Compliant Identifier (CICI). In October 2013, the pre-LEI or CICI of the public service CICI were approved by the ROC for use in global reporting across asset classes and for extended use of these identifiers beyond reporting to trade repositories. In December 2013, CICI Utility was renamed GMEI Utility to reflect its broad international reach. The financial crisis has highlighted the need for greater transparency and regulation in financial markets. Regulators around the world face the challenge of conducting systemic risk analysis to understand the overall risks of companies and their counterparties across asset classes and markets. The precise and precise identification of legal entities involved in financial transactions is therefore crucial for both financial institutions and regulators.
1. Each swap execution mechanism, designated contract market, derivatives clearing house, swap data repository, reporting entity in accordance with section 45.9 and swap counterparty shall use entity identifiers to identify itself and trade swap counterparties in all swap data records and reports in accordance with this Part. If a swap counterparty is not eligible to obtain an entity identifier under the Global Legal Entity Identifier System, that counterparty shall be identified in all swap data records and reports under this Part with another identifier in accordance with the Commission in accordance with Article 45.13(a) of this Chapter. In order to obtain an entity identifier, an LEI application must be completed. An LEI can be requested from a Local Operating Unit (LOU), i.e. entities that issue LEI codes, or from an LEI registrar, such as LEI search. The registration and renewal of the LOU, as well as other services, must be accredited by the Global Legal Entity Identifier Foundation (GLEIF) to be approved to issue LEIs. Registration agents establish a connection between customers and LOUs, take care of the whole process and make it as easy as possible for the end customer.
Where possible, the entity`s data shall be validated from the relevant official business register. In the case of trusts or pension funds or other types of entities that are not listed in an official register, the client is usually asked to provide some form of official document from which the company`s data can be validated. After submission of the application and payment of the fee, the data will be processed and assigned to the LEI. It will be published in the GLEIF database and the client will also be informed that the process is complete. Some of the largest multinational banks have thousands of legal entities, many with similar names, operating around the world. With the expansion of the global LEI system, it is designed to help regulators and market participants understand and document these complex corporate structures and hierarchies. 2. Each swap dealer, primary swap participant, swap execution mechanism, named contract market, derivatives clearing house and swap data store shall maintain and renew its legal identity identifier in accordance with the standards established by the global legal entity identification system. The benefits generated by the Global LEI Index for the wider business community increase with the rate of LEI adoption. Therefore, in order to maximize the benefits of identifying companies in the capital markets and beyond, companies are encouraged to participate in the process and obtain their own LEI.
Getting an LEI is easy. Registrants simply contact their preferred trading partner from the list of LEI issuing organizations available on the GLEIF website. An LEI number consists of several parts. The first four digits identify the local operating unit (LOU) that assigned the LEI, and the next two digits always have a value of 0. Characters 7 to 18 are unique for each entity and the remaining two digits are used for verification purposes. Even if the LEI code of a legal entity follows the ISO technical specification, the LEI code itself does not provide valuable information, but only serves to uniquely identify each entity. The other part of the baseline, the „level 2“ data, answers the question „Who owns whom?“ Where appropriate, it allows the identification of the direct and ultimate parent companies of a legal entity. Each swap execution mechanism, designated contract market, derivatives clearing house, swap data repository, entity notification in accordance with section 45.9 and each swap counterparty entitled to receive an entity identifier shall be identified in all swap data records and reports under this Part by a unique entity identifier in accordance with this Section.
The GMEI utility, developed by DTCC and SWIFT in collaboration with the financial industry, creates and assigns globally accepted unique identifiers across multiple jurisdictions to companies involved in financial transactions, a critical requirement for compliance with current and future reporting requirements. The legal entity identifier is the international standard ISO 17442. LEIs are identification codes that allow consistent and accurate identification of all legal entities involved in financial transactions, including non-financial institutions. They make it possible to accurately identify a legal party to a financial transaction. It is linked to a record of critical information about the transaction unit, which can also include information about the final ownership of the entity. What makes the global LEI system reliable in the long run is the requirement to renew LEI codes annually. During the renewal process, the entity`s data is revalidated, ensuring that the LEI data is always up-to-date and reliable. An LEI number is used in financial transactions such as trading stocks, bonds or currencies. LEIs are required by companies to comply with their reporting obligations under financial rules and objectives. They also help reconcile and aggregate market data for transparency and regulatory reasons. An LEI identifies any entity that conducts financial transactions in any jurisdiction in the world.