Who is required to use an LEI?

More than 2 million companies, trusts and funds now use LEI numbers to authenticate themselves on the financial market. These codes are used for identification and provide insights into ownership structures.

Why is an LEI number necessary?

In the context of financial regulations, such as MifID II, MiFIR, Dodd-Frank Act, EMIR and others, the LEI number forms the basis for legal entities to be allowed to conduct transactions on the financial market at all. Without a valid LEI number, a legal entity is not permitted to carry out financial market transactions, otherwise it may be subject to fines. There are over 100 regulations requiring the use of an LEI number for financial transactions, and more regulations are added every month.

The LEI number contains accurate and valuable identifying information and contributes to a high level of confidence in the authenticity and identity of an organization. The number of data providers and credit verification organizations using LEI numbers in know-your-customer (KYC) and customer onboarding processes continues to grow.