LEI reaches 1 million mark
Regular readers understand that one of the drivers of the Legal Entity Identifier is the “No LEI, No Trade” rules that are part of the MiFID II regulations that came into effect on 3 January.
When over-the-counter financial trades are completed between two parties and at least one of those parties is based in the EU, then both of the participants in the trade need to have an LEI. The side effect of this important new transparency measure is that the number of LEIs that have been issued has spiked sharply upwards. Good news not only for financial safety and soundness, but for efficient market operations within the private sector.
Keep an eye on how many LEIs have been published and where at the GLEIF website.
Regulators should consider how identifiers that are not only global and unique but increasingly ubiquitous can benefit their operations and conduct within their jurisdictions. Companies should consider how LEIs can provide business value and not just be part of a compliance overhead.
Oh! Don’t forget to build your business report definitions with the small XBRL taxonomy that provides built in validation of LEI checksums and globally consistent tags.