The latest developments with Legal Entity Identifiers

Basic information including parent data and corporate events of legal entities, such as investment funds, government entities, and more, can be readily defined and tracked by using a nifty tool called a legal entity identifier, or an LEI. An LEI is a unique 20-character alphanumeric code that identifies legal entities that are involved in financial markets including transactions, reporting, and even supply chain. The standard for this identifier and its associated reference data has been established in ISO 17442. By attaching this unique code to legal entities, it helps to enhance financial data quality and bring more transparency and consistency to the capital markets.

LEIs have become an increasingly popular tool with over 2.3 million in existence today. Part of their growing draw is due to regulations such as MIFID II. In this instance, an LEI is required for counterparties who engage in any financial transaction. Hence the phrase: “No LEI no trade”. This is just one example, there are over 200 regulations globally that either require the use of the LEI or suggest its use to streamline compliance.

As an accredited Local Operating Unit of the Global LEI System, Bloomberg is able to issue, maintain, and renew LEIs for firms. As of January 2023, Bloomberg is the fourth largest issuer of LEIs globally with over 175,000 LEIs under management. Bloomberg is also accredited to issue LEIs for entities, including funds, in 228 jurisdictions globally making it one of the most versatile LEI providers worldwide. LEIs are expected to only get more popular as the number of regulations and future use cases, such as in cross-border transactions, continues to increase annually.

To make LEIs readily accessible, firms can access LEIs through Bloomberg’s web portal lei.bloomberg.com or on The Bloomberg Terminal at LEI <GO>. In 2022, Bloomberg revamped the web portal with an enhanced user experience, additional functionality, and greater storage capacity. The firm also released the New Common Data Format 3.1 Dataset for LEIs to increase transparency of legal entity types, relationships, and events and as a result, Bloomberg received a second accreditation as an LEI issuer for funds.

Bloomberg’s LEI momentum has continued into 2023, with Bloomberg reducing all fees for LEI registrations and renewals as of April 1, 2023. From that date, the cost for a new LEI is now $60 USD, and an existing LEI renewal is now $40 USD. Discounts for bulk LEI registrations and renewals are also available. Bloomberg has consistently been one of the most competitively priced LEI providers. With these new reductions, Bloomberg supports the global accessibility and growth of the LEI, and adheres to cost recovery model principles enabling the public to obtain LEIs at a nominal fee while at the same time continuing to add greater transparency to the financial marketplace.

To learn more about Bloomberg’s LEI service, please visit the FAQ page. To contact Bloomberg’s experienced global support team, please reach out to: lei-support@bloomberg.net