Trade Magnates -ESMA, The European Securities and Markets Authority, has released LEI requirements documentation urging financial institutions to apply their unique identification code by January 2018 under the new MiFID II rules.
The MiFID II rules require trades to be reported in wider range of market participant. This detailed report will be for regulators to identify who is ultimately behind each transaction by using the Legal Entity Identifier “LEI” Which is a 20-digit code that enables clear and unique identification of legal entities participating in financial transactions and for matching and aggregating market data.
Financial Firms need LEIs to fulfil their obligations under financial regulations and directives. LEIs are
ESMA Chairman Steven Maijoor commented: “This is not a difficult process, if you make the effort now you can obtain your LEI within a short time frame. It costs a few hundred euros and will save your time and expense in the long run while providing comfort to your clients, counter parties and regulators.”
ESMA is always striving to ensure transparency by applying new regulations and solutions to firm to make their reporting easier and faster for regulators to identify the market participants.
LEIs can be generated by visiting the “GLEIF”, Global LEI Foundation, official website and follow the code generation process.
