What is an LEI Code?
We guess you’ve probably stumbled upon LEI or the relevant terminology. It’s quite common to not know about certain terms irrespective of any age. So, you are looking to get a grasp of some brief info about LEI, right? Well, to say that you are on the right page would be an understatement. Because you’ll find all the brief details about LEI here – such as what is an LEI code, how is it structured, where is it used, how can you access it, etc.
Getting yourself educated about LEI with the help of Google and the simple terminology is a piece of cake these days. Just as described in this article. Have a look!
What is an LEI Code?
An LEI code stands for LEGAL ENTITY IDENTIFIER. The term can be segregated into two, namely – Legal entity and Identifier or Identification code.
The Legal Entity Identifier (LEI) is a prominent identifier for legal entities that participate in financial transactions globally. LEI is also sometimes known as an LEI code or LEI number. This identifier code is a formatted 20-character alpha-numeric code regulated by the ISO 17442 standard structured by the International Organization for Standardization (ISO).
The Legal Entities are the organizations or firms that take part in the financial transactions. All financial firms, companies, and organizations must have an LEI code.
A person may not be able to avail of an LEI. He/She has no access to it in particular.
● LEI code – stands for Legal entity identifier code.
● A unique identification code for legal entities trading in financial markets (for instance – stocks, bonds, futures, forex).
● Every deal carried out in the markets will adhere to the other counterpart with an LEI.
● Used for regulators to supervise financial markets.
● LEI interlinks financial markets, organizations, and regulators.
● The issuance of a Legal Entity Identifier code is conducted under GLEIF-accredited Local Operating Units (LOUs).
● GLEIF – stands for Global Legal Entity Identifier Foundation.
● Works on the principle of NO LEI, NO TRADE.
What is the Structure of an LEI Code?
A legal entity identifier code or an LEI code is assimilated by ISO certificate 17442 consisting of a combination of 20 numbers and letters.
Numbers 1-4 will show the ID of the LOU which issued the LEI.
Numbers 5-6 will have a value of 0.
Numbers/Letters 7-18 are unique for an entity.
Numbers 19-20 mark the verification purposes.
Who Issues LEI Code?
GLEIF is the organization that governs the issuance of LEIs, but its issuance is accounted for by private or public firms called LOUs or Local Operating Units.
We had promised to not lengthen the subject and there it is; it reached its end. All information provided will be adequate for you to get started with allocating LEI services or availing LEI services for your respective entity.
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