What is an LEI code?
An LEI code is a 20-character code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). An LEI number references important information that offers transparency when participating in financial transactions such as trading with stocks, bonds, or forex.
What information is identifiable with an LEI code?
The publicly available LEI data helps to identify legal entities clearly and thus provides more transparency in the global marketplace. An LEI code displays an entity’s legal name, the registry the entity is registered in, the registration number, legal jurisdiction, legal form, entity status, and contact details such as the entity’s legal address and headquarters address. This is classed as Level 1 data. It helps to understand who is who. An LEI code also contains information about an entity’s ownership structure. This is classed as parental (Level 2) data. It helps to identify who owns the legal entity and also whom the entity owns.
According to the Global Legal Entity Identifier Foundation (GLEIF), an LEI code is designed to answer three critical questions when entering a corporate financial transaction:
- who is who
- who owns whom
- who owns what
These questions can be answered thanks to the Level 1 and parental (Level 2) data available in an LEI search.
Structure of an LEI code
LEI code is standardized with ISO certificate 17442 and consists of a combination of 20 numbers and letters.
- Numbers 1-4 always show the ID of the LOU which issued the LEI
- Numbers or letters 5-18 are unique to each entity
- Numbers 19-20 are for verification purposes
Who needs an LEI code?
Legal Entity Identifiers are required by any legal entity that regularly incorporates financial transactions, including buying stocks, bonds, and other securities.
Financial institutions such as banks, investment and insurance companies, credit unions, and brokerages must obtain an LEI code.
Several industries are now required to apply for an LEI. Some jurisdictions also require legal entities to obtain an LEI to make them easily identifiable. Read more about who needs an LEI code.
Natural persons are an exception and DO NOT need an LEI code.
Simple terms
- LEI code – legal entity identification number (also referred to as code)
- A unique identification code for entities that trade in financial markets (stocks, bonds, futures, forex, etc.)
- Every deal conducted in the markets will connect to the other counterpart with an LEI code.
- Used by regulators to oversee financial markets
- Global Legal Entity Identifier Foundation (GLEIF)
- LEI connects financial markets, companies, and regulators
- GLEIF-accredited LOUs conduct the issuing of an LEI code
- NO LEI, NO TRADE
Renewal of an LEI code
An LEI code needs an annual renewal. This means an LEI issued on 01/02/2023 must be renewed before 01/02/2024. If the deadline passes, your LEI will become inactive until renewed. Renewing LEI numbers is necessary to ensure that the data in the Global LEI Pool is relevant and up-to-date.
LEI Register offers the renewal of LEIs for a 1-, 3- or 5-year period. Whatever the period, you will receive a notification from us 59 days before your paid expiration date ends so you can renew your LEI in time. In case of a multiyear LEI renewal, the LEI Register will update your data based on official company registries and renew the LEI code for you. We aim to keep your LEI data up-to-date and accurate.
An LEI code is all about connecting the dots
The vision of the GLEIF is to have one universal registration number for all legal entities around the globe. An LEI would provide standardized and high-quality reference data.
“We believe that, ultimately, there should be one identity behind every business. Having an LEI will help to achieve this objective.”
GLEIF – Global Legal Entity Identifier Foundation
Who can issue an LEI code?
The GLEIF governs the issuance of LEIs but does not issue LEIs itself. LEIs are issued and managed by the GLEIF-accredited Local Operating Units (LOUs). LOUs are a gateway for legal entities wishing to obtain an LEI code. A list of GLEIF-accredited LOUs can be found here.
LOUs partner with Registration Agents. LEI Register India is an LEI Registration Agent. Our primary objective is to facilitate accurate and reliable information regarding the Global LEI System, LEI code registration, renewal, and transfer. We are dedicated to simplifying the processes of LEI application, transfer, and renewal. Additionally, we serve as an intermediary in communications between LOUs and entities seeking LEIs.
Furthermore, it should be emphasized that the success of an LEI Registration Agent is determined by their ability to offer excellent service and competitive pricing. Therefore, our approach is focused on putting the customer first.
