Resources & Technical Terms
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Addresses - Legal & Headquarters
The legal address of an entity will be the location of where it was legally incorporated, while a headquarters address will be the location of where the entity's office is physically located.
Alphanumeric Code The LEI number is an alphanumeric code consisting of or using both letters.
CHAPS - Clearing House Automated Payment System
CHAPS is a same-day sterling payment system in the United Kingdom, operated by the Bank of England. It facilitates high-value and time-critical payments between banks and other financial institutions, ensuring secure and efficient settlement. CHAPS transactions often require the use of LEI numbers to accurately identify the parties involved, enhancing transparency and compliance with regulatory requirements.
Conformity Flag
The LEI number conformity flag is a critical indicator that ensures a Legal Entity Identifier (LEI) adheres to ISO 17442 standards. This flag plays a vital role in maintaining accurate identification of entities involved in financial transactions, enhancing transparency and reducing systemic risk in global markets.
EMIR - EUROPEAN MARKET INFRASTRUCTURE REGULATION
EMIR, akin to Dodd-Frank laws, regulates derivatives reporting and LEI usage to monitor and mitigate risks within the financial system. Enforced since late 2012, it aims to enhance market transparency and stability.
Financial Stability Board (FSB)
Formed post-2008 financial crisis, FSB monitors and advises on global financial system stability. Its recommendations aim to mitigate systemic risks and ensure resilience in markets worldwide.
Lapsed Status
A formal designation within the Global LEI Index indicating that an entity has failed to complete its mandatory annual re-certification. A "Lapsed" status is a public indicator of regulatory non-conformity and typically results in the rejection of trades by financial counterparties under "No LEI, No Trade" protocols.
Legal Entity Identifier (LEI)
LEIs, in accordance with the ISO standard 17442, serve as identification codes for legal entities engaged in financial transactions. They ensure consistent and precise identification, encompassing both financial and non-financial institutions.
Legal Entity
Legal entities, whether individuals, companies, or organisations, possess distinct legal rights and obligations. LEI numbers are required for various entities, including limited companies, trusts, and charities, for identification purposes in financial transactions
Local Operating Unit (LOU)
LOUs, authorised by the Global LEI Foundation, oversee the allocation of LEI codes. They play a pivotal role in ensuring the accurate issuance and management of LEIs for legal entities.
LEI Level One Data
Essential information such as entity name and registered address constitutes Level 1 data in LEI records. These details serve as foundational identifiers for legal entities in financial transactions.
LEI Level 2 Data
Level 2 data within LEI records encompasses ownership-related information concerning the registering entity. This layer of data provides insights into the ownership structure of legal entities.
Local Operating Unit (LOU)
LOUs, authorised by the Global LEI Foundation, oversee the allocation of LEI codes. They play a pivotal role in ensuring the accurate issuance and management of LEIs for legal entities.
MIFIR - MARKETS IN FINANCIAL INSTRUMENTS REGULATION
MiFIR are the accompany regulations to MiFID 2 and have been designed to improve disclosure of trade data to the competent authorities in the EEA.
MiFIR requirements are designed in relation to the disclosure of trade data to the public and competent authorities. MiFIR will replace the existing MiFID transaction reporting requirements and came into force in January 2018.
As MiFIR is an EU regulation, which has become part of UK domestic law following BREXIT.
No LEI, No Trade
An industry-standard regulatory enforcement policy. Since the implementation of MiFID II, investment firms are prohibited from executing trades on behalf of a client who does not possess an active, conforming LEI. This ensures that every participant in a reportable transaction is uniquely and accurately identified.
ISO 20022
The international standard for financial messaging (replacing the older MT standards). ISO 20022 introduces highly structured data fields for payments. In the UK, the Bank of England’s CHAPS system now requires the LEI to be embedded within these messages to automate compliance screening and reduce transactional friction.
ISO 17442
ISO 17442 defines the Legal Entity Identifier (LEI) standard, a 20-character alphanumeric code uniquely identifying legal entities in financial transactions. It ensures consistent and reliable identification globally, enhancing transparency, risk management, and regulatory compliance in financial markets by providing key reference data, such as entity names and locations.
SFTR - SECURITIES FINANCING TRANSACTIONS REGULATION
Scheduled for enforcement from April 2020, SFTR, similar to EMIR, scrutinises risks associated with securities financing transactions. It aligns with regulatory efforts to bolster transparency and risk management in financial markets.
SWIFT - Society for Worldwide Interbank Financial Telecommunication
SWIFT is a global messaging network used by financial institutions to securely transmit instructions and information relating to financial transactions. It facilitates cross-border payments, interbank communication, and the exchange of financial messages worldwide. SWIFT transactions frequently involve the use of LEI numbers to uniquely identify legal entities, facilitating smooth and reliable transaction processing while adhering to regulatory standards.
Search Tool For LEI Numbers
LEI search tools are online platforms or databases that allow users to look up and verify LEI numbers and associated entity information. They provide convenient access to LEI data for regulatory compliance and due diligence purposes.
Regulatory Oversight Committee (ROC)
ROCs are entities appointed by the Global LEI Foundation to oversee the governance and implementation of LEI standards globally. They ensure compliance with regulatory requirements and consistency in LEI issuance and maintenance.
Relationship Data (Level 2)
Often referred to as "Who owns whom" data. While Level 1 data identifies the entity, Level 2 data identifies its direct and ultimate accounting parents. This allows regulators to map corporate hierarchies and understand the concentration of risk across global financial groups.
Renewal
LEI renewal is the process of updating LEI records annually to ensure the accuracy and currency of entity information. It is essential for maintaining the integrity and reliability of LEI data in financial transactions.