27 Mar Why LEI registry plays an important role in UK Business Market
The LEI (Legal Entity Identifier)
The Legal Entity Identifier (LEI) is a 20-character reference code to uniquely identify legally distinct entities that engage in financial transactions and associated reference data.
The Global Legal Entity Identifier Foundation (GLEIF) does not directly issue Legal Entity Identifiers, but instead, it delegates this responsibility to Local Operating Units (LOUs). Local Operating Units can have different prices for the registration services they offer. GLEIF is responsible for monitoring LEI data quality
LEI in the UK
London Stock Exchange is authorized by the Global Legal Entity Identifier Foundation (GLEIF) as an authorized Local Operating Unit (LOU) for the global allocation of Legal Entity Identifiers (LEI). London Stock Exchange issues LEIs to legal entities using the requirements set by GLEIF and the agreed principles outlined by the LEI Regulatory Oversight Committee.
LEI Registry
The LEI system receives a large amount of information on both registered entities and the use of the system. Initial data entered will be for registered entities which may
change over time. The LEI registry system should also be capable of retaining all relevant information on any changes made to data items for each entity. It is very important to maintain a full history of changes in LEI reference data, in order to maintain a strong audit trail in case of queries and to enable users to be able to track the timeline of changes and to challenge the accuracy of information.
To achieve the global application of a standard, the global LEI structure accommodates the different rules, regulations, customs, languages, preferences, and practices that apply in different sovereign states and jurisdictions, leading to the establishment of local registration facilities that are able to address these local characteristics in a meaningful way.
The LEI architecture allows for diversity in both governance and services offered. For example, one country may have a strong preference for a critical utility like the LEI registry to be operated as a governmental or quasi-governmental the agency specified under national law like the UK, where the London Stock Exchange is the LOU. Another country may prefer a private competitive market, in which case there might be more than one LEI registry that offers services within that jurisdiction, with the resulting competition serving to drive down prices and increase flexibility for end users, like India, which has many LOU and a lot of registries.
In the UK, the LEI registry even if held by private parties are derived out of the data collated, maintained and updated by the government. Hene, in the UK business market, the LEI registry holds high value.
The London stock exchange that is the LOU and Companies house being the LEI registry has a proven track record with reference data software solutions.
The user interface provides an advanced look-up service to access all LEI reference data in one database. Thus enabling users to view, filter, manipulate and extract data which has been consolidated through a single tool, including a downloadable consolidated file of all of the global LEIs.
The consolidated database ensures all LEI records are cross-referenced before a new LEI is created to ensure avoidance of duplicates.
Also since LSE has contributed to the development of international standards for the financial services industry for many years and participated in the ISO process for the development it has rich experience and keeps upgrading with advanced functionalities to make the user experience better.
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