Legal Entity Identifier(LEI) issuance
The Legal Entity Identifier (LEI) is global identification code based on the ISO 17442 standard, which are allocated to corporations and funds engaging in financial transactions. The LEI was adopted for the efficient and integrated management of financial transaction information.
Definition of LEI
The LEI code is a global standard that uniquely identifies legal entities.
|Prefix*(4-digit number)||Reserved ('00')||Entity identifier (12-digit alphanumeric code)||Checksum digits|
- LEI Code: An LEI is a 20-character alpha-numeric code (the first 4 digits is a unique number allocated to the issuing institution, and the 12 characters in the middle are a randomly generated alpha-numeric string.)
- Reference data: Information to identify a distinct entity (entity name, address, business registration, changes due to merger/splits, etc.)
LEI issuance procedure
- All entities engaging in financial transactions can obtain an LEI.
- Main users of LEIs: Banks, financial companies, collective investment schemes (investment funds, hedge funds, PEF, etc.), financial brokerage companies, listed companies, export companies, etc.
- LEI issuance
- To obtain an LEI, visit the LEI-K portal (www.lei-k.com) operated by KSD, enter corresponding corporation information into the system, and then apply for an LEI.
- Once the application fees are paid, KSD checks for duplicate issuance and data compatibility, after which the LEI is issued within 3 to 5 business days.
- LEI porting
- In case an entity using an LEI issued by a foreign LOU wishes to have their LEI managed by KSD, it can request the transfer of its LEI code to KSD.
Benefits of using LEIs
LEIs contribute to the stability and efficiency of the financial market by facilitating the market monitoring functions of financial authorities, risk management for individual corporations, and convenient reporting.
- Financial authorities:
The process of collecting transaction data is simplified, enhancing the convenience of market monitoring and strengthening oversight over abuse of a dominant market position, as well as enabling financial market management through cross-border information sharing.
- Individual corporations:
Individual corporations can benefit from efficient risk management such as estimating the risk cost of individual transactions, reduced cost of collecting counterparty information, and efficiency of financial transactions reporting.