Central Securities Depositories require Issuers to have an LEI

The EU Central Securities Depositories Regulation (CSDR) requires central securities depositories to have a Legal Entity Identifier (LEI) for each issuer of a security.

As of 2 April 2018, international central securities depositories, such as Euroclear Bank and Clearstream Banking, will compulsorily require every issuer to have a valid and current LEI for the issue of a new security; otherwise the security will not be accepted.

Since April 2013, WM Datenservice has been operating one of Europe’s leading agencies for the allocation of Legal Entity Identifier s (LEIs) with its WM-LEIPORTAL.  WM Datenservice has already allocated more than 120,000 LEIs to entities in 145 countries (status: February 2018), including issuers of shares, bonds, securitized derivatives and investment funds.

ESMA Grants a Transitional Period

According to MiFID II (Markets in Financial Instruments Directive) and MiFIR (Markets in Financial Instruments Regulation) all counter parties of securities transactions in the EU must have an LEI, as of 3 January 2018. This applies to legal entities and entities qualifying for an LEI, respectively. Yesterday, ESMA has issued a statement that securities service providers will be exempt from the LEI obligation until 30 June 2018 if certain conditions are fulfilled. One of the conditions is that a securities company is provided by its customers with the required documents that will allow it to apply for an LEI on behalf of its customers.

The ESMA statement of 20 December 2017 can be found here.

The Börsen-Zeitung article of 21 December 2017 on the transitional period can be here.

LEI Application at the Turn of the Year 2017/18

Please note that due to an extensive 2017 year-end processing at WM Datenservice and under consideration of our due diligence obligations in regard to the LEI applications and renewals we have already received, we would like to inform you that all LEI requests for applications and renewals that we will receive after 12 December 2017 are expected to be finalized not earlier than in January 2018. This is the case despite overtime and additional weekend work.

All requests will be processed in chronological order in accordance with their date of receipt.

WM reduces fees for LEI services

WM Datenservice reduces its fee for the initial allocation of an Legal Entity Identifier (LEI) to €80 (net). At the same time, the fee for the annual renewal of an LEI will be reduced to €70 (net) per year.

These price cuts are applying for new and existing LEI-customers as of 14th September 2017. WM Datenservice is again passing on its economies of scale for the allocation of LEIs to its customers.

Since April 2013 WM Datenservice, Europe’s largest agency for the allocation of Legal Entity Identifiers (LEIs), has been operating the WM-LEIPORTAL. WM Datenservice has already allocated an LEI for more than 78,000 entities in 139 countries (as of September 2017).

The LEI is an international standardised code which is used by companies, financial service providers and regulatory authorities. For instance, the 20-digit alphanumeric LEI code increases the transparency in bilateral business. As of 3 January 2018, the LEI will also be compulsory for securities trading in Europe according to MiFID II and MiFIR.

 

Brønnøysund Register Centre Transfers its LEI Records to WM Datenservice

Today, the Brønnøysund Register Centre (http://www.glei.no) has transferred all of its LEI records to WM Datenservice. As agency for the allocation of Legal Entity Identifiers, WM Datenservice will now be the Managing Allocation Agency for these Norwegian LEIs.

WM Datenservice has over four years of experience as LEI allocation agency and manages over 70,000 LEIs for customers in 137 countries. WM Datenservice is Europe’s largest LEI allocation agency and has been accredited by the Global LEI Foundation (GLEIF) on 13 April 2017. All LEI services are provided via the WM-LEIPORTAL (https://www.wm-leiportal.org).

WM is fully accredited as a Local Operating Unit authorized to issue Legal Entity Identifiers by the GLEIF

We are pleased to announce that on 13 April 2017 the Global Legal Entity Identifier Foundation (GLEIF) acknowledged that WM Datenservice is fully accredited as a Local Operating Unit authorized to issue Legal Entity Identifiers (LEIs). WM Datenservice assigns the 20-digit alphanumeric LEI for the worldwide identification of legal entities via the WM-LEIPORTAL (www.wm-leiportal.org) since April 2013. The accreditation of WM Datenservice as official LEI allocation agency (LOU, Local Operating Unit) by the GLEIF replaces the recognition of WM Datenservice by the LEI ROC (Regulatory Oversight Committee) of October 2013.

WM Datenservice is Europe’s largest agency for the allocation of Legal Entity Identifiers (LEIs) and has already allocated more than 70,000 LEIs to entities of more than 137 countries (as of April 2017). All LEIs allocated before the accreditation by the GLEIF will remain unchanged.

WM Datenservice (www.wmdaten.com) is one of the leading data providers for the German financial industry. In addition to the LEI, the company also assigns the German Securities Identification Number (Wertpapierkennnummer/WKN) and the International Securities Identification Number (ISIN) to securities issued by German issuers.

WM reduces prices for LEI allocation as of 24 April 2017

As of 24 April 2017, WM Datenservice will reduce its fee for the initial allocation of a Legal Entity Identifier (LEI) by €45. The initial verification of an LEI will then cost only €100 (net). At the same time, the net fee for the annual renewal of an LEI will be reduced by €15 to €80 (net) annually. By reducing the abovementioned fees, WM Datenservice is passing on its economies of scale in connection with the initial allocation and renewal of LEIs to its customers.

Since April 2013 WM Datenservice, Europe’s largest agency for the allocation of Legal Entity Identifiers (LEIs), has been operating the WM-LEIPORTAL. WM Datenservice has already allocated an LEI for more than 70,000 entities of more than 137 countries (as of April 2017).

The LEI is a worldwide valid code required for the identification of companies, financial securities providers and regulatory authorities. For instance, the 20-digit alphanumeric LEI code increases the transparency in bilateral business. As of 3 January 2018, the LEI will also be compulsory for the securities trading in Europe as per MiFID II and MiFIR.

LEI, company data and information on the group structure (Level-2-Data)

So far the reference data on an Legal Entity Identifier (LEI) contain information on the official name and the registered domicile of the legal entity, so-called ”Level-1-Data” data. As of 1 May 2017, information on the direct and ultimate parent of a legal entity will be collected, verified and published pursuant to the requirements of the Global Legal Entity Identifier Foundation (GLEIF) as well. From that date legal entities will have to indicate these so-called “Level-2-Data” data when they apply for an LEI or its renewal.

We will soon provide information on how legal entities can indicate information on the group structure when they apply for an LEI or its renewal.

WM Datenservice is Europe’s largest agency for the allocation of Legal Entity Identifiers (LEIs) and has already allocated more than 70,000 LEIs to entities of more than 137 countries via the WM-LEIPORTAL (www.wm-leiportal.org ) (as of April 2017).

LEI allocation fee will be reduced by €12

As of 1 October 2016, WM Datenservice will reduce its fee for the initial allocation of a Legal Entity Identifier (LEI) by €12. The initial verification of an LEI will then cost only €145 (net). The net fee for the annual renewal of an LEI will be reduced by €12 as well; to €95 (net) annually. Since April 2013 WM Datenservice, Europe’s largest agency for the allocation of Legal Entity Identifiers (LEIs), has been operating the WM-LEIPORTAL. By reducing the abovementioned fees, WM Datenservice is passing on its economies of scale in connection with the initial allocation and renewal of LEIs to its customers.

The LEI is a worldwide valid code required for the identification of companies, banks, insurers and pension funds due to regulatory requirements. For instance, the LEI increases the transparency for the trading of over-the counter derivatives, securities and for lendings.

WM Datenservice has already allocated the 20-digit alphanumeric code for more than 66,000 entities of more than 132 countries (as of September 2016).

LEI for individuals

For individuals acting in a business capacity, the application for an LEI is from now on possible with WM Datenservice.

Please note that an already existing entry in the respectively responsible commercial register is required for a successful LEI application and allocation.

For additional information, please contact us at gei-helpdesk@wmdaten.com.

Automated LEI Validity Checks

At the end of October 2015, stricter ESMA requirements for derivate reporting will come into effect. These requirements include the verification of an LEI’s validity.

Starting from the end of October, trade repositories will have to verify that the contents and format of EMIR transaction reporting is correct. In this context, LEI information will be required. WM Datenservice offers an interface for the automated verification of LEIs on its website www.geiportal.org. The “LEI Verification Interface” (LVI) allows banks and other service providers that submit their EMIR transaction reporting to trade repositories to check the validity of LEIs in an automated fashion and in real time.

The LVI solution makes the creation and maintenance of an own LEI database unnecessary. The results of the online verification are instantly rendered in XML format and can be imported or transferred into internal systems for further processing.

The WM Datenservice LVI service offers the following advantages:

+ Easy Use

+ Daily Updates

+ Fully Automated Results

+ Global LEI Coverage

+ Verification of Legal Entity and LEI Status

For additional information, please contact us at sales@wmdaten.com.

LEI Application Fee Adjustment on April 1, 2015, Due to Exchange Rate Fluctuations

The fee for an LEI application or renewal includes a contribution fee in the amount of $ 20 paid to the Global LEI Foundation (GLEIF). The Foundation coordinates and monitors the Global LEI System (GLEIS).

Since the contribution fee is set in US dollars and due to significant recent exchange rate changes, the fee in euros (= EUR 15) had to be adjusted.

On April 1, 2015, the “Charge for the Global LEI System” was increased by EUR 3.50 per GEI. In the future, the fee amount will be reviewed every three months to account for any further exchange rate changes. For more information, please refer to the current list of prices.

Legal Entity Identifier (LEI) Requirement Extended to Additional Companies

In accordance with the ECB Decision (Art. 6 (2) – ECB/2014/29) on the provision to the European Central Bank of supervisory data reported to the national competent authorities by the supervised entities, the national competent authorities of the countries participating in the Single Supervisory Mechanism (SSM) are required to identify the supervised entities in their transmission of data to the ECB by the use of a Legal Entity Identifier (LEI).

Provided certain conditions are met, these supervised entities include: (1) CRR credit institutions, (2) financial holding companies, and (3) mixed financial holding companies.

Also the Federal Financial Supervisory Authority (BaFin) informs in its current Circular 1/2015 (BA) that entities belonging to the above-mentioned categories have to have a LEI and that they have to report the identifier to the Deutsche Bundesbank in order to allow for proper data transmission to the ECB. BaFin points out that entities that have already been assigned a LEI will not need to apply for another one. Such entities should simply report their LEI to the Deutsche Bundesbank.

Entities should report their LEI to the Deutsche Bundesbank via email at mio-dta@bundesbank.de by February 28, 2015.

The LEI is an identifier that can be applied for online at authorized allocation agencies (e.g.,geiportal.org).

Global LEI Data available as Download via Internet and FTP Account – Geiportal.org introduces LEI Verification Interface

Since December 1, 2014, Geiportal.org has been providing the LEI data of the currently 20 worldwide existing LEI allocation units (LOUs) in form of daily updated downloads via the internet or via FTP account. Alternatively, the data can also be retrieved in XML format via a secured FTP account. This service is subject to a fee. .

The data is made available for download at around 6:00 a.m. (CET) every day. Service recipients may choose between a full file and a daily delta file. The latter only includes data additions or changes compared to the previous day.

For further information, please email us at sales@wmdaten.com.

Here, we also provide the option to search for specific data within the global LEI database.

Please note that we will no longer provide LEI data in not CFF-conform formats (CFF = Common File Format) after December 31, 2014.

LEI Verification Interface (LVI) – LEI Identification Service with Global Coverage– Beta Version

Geiportal.org has introduced a web-based LEI number identification service which makes it possible for customers and other market participants to verify the validity of any LEI number in real-time.
This LEI Verification interface is temporarily made available free of charge as beta version.

Among other things, it offers the following advantages:

  • Easy and convenient operation of the interface without having to establish a database.
  • Verification of an LEI number and of the corresponding legal entity data within seconds.
  • Automatic verification of the validity of an LEI number and review of its current status.
  • Global coverage: The LVI allows for the verification of LEI data provided by any of the currently 20 worldwide existing LOUs.

For further information and for LVI access, please email us at sales@wmdaten.com.

EIOPA issues Guidelines on the use of the Legal Entity Identifier

The European Insurance and Occupational Pensions Authority (EIOPA) issued today its Guidelines on the use of the Legal Entity Identifier (LEI) in all the official languages of the EU. According to them, national competent authorities (NCAs) should ensure that all institutions under their supervisory remit obtain a LEI code. The use of LEI will apply to all information collected by EIOPA including Solvency II reporting and registers. .

Within 2 months, the NCAs should confirm to EIOPA their compliance or intention to comply with the Guidelines on the use of LEI that will become applicable on 31 December 2014.

With these Guidelines, EIOPA supports the adoption of the LEI system proposed by the Financial Stability Board (FSB) and endorsed by the G20, aimed at achieving a unique, worldwide identification of parties to financial transactions. EIOPA believes that the use of LEIs will enhance supervisory convergence and overall efficiency of the supervisory system while ensuring the high quality, reliability and comparability of data.

In addition EIOPA publishes the Final Report on the public consultation on the draft Guidelines related to the use of LEI, which contains the impact assessment of the Guidelines and EIOPA’s Feedback Statement on the public consultation.

The language versions of the Guidelines and other documentation can be viewed here.


Legal background

EIOPA Guidelines are addressed to National Competent Authorities (NCAs) or Financial Institutions. Their aim is to ensure common, uniform and consistent application of Union law as well as to establish consistent, efficient and effective supervisory practices drafted by EIOPA in accordance with Article 16 of the Regulation establishing EIOPA.

EIOPA has the obligation to list in its Annual Report those NCAs that reported non-compliance as well as the measures to be taken. A report on the compliance will be sent to the European Commission, Parliament and Council.

Hessen Wants to Lure GLEIF to Frankfurt

During his welcome address at a conference on the Legal Entity Identifier (LEI), the Hessian Minister of Economics Tarek Al-Wazir promoted Frankfurt as potential location for an office of the Swiss Global LEI Foundation (GLEIF). His audience consisted of around 120 financial industry agents, bank supervisors, and central bank representatives. .

Among other things, the Hessian government offers a start-up financing in the amount of EUR 500,000 should the foundation decide to come to Frankfurt.

The proposed GLEIF office will be in charge of controlling the worldwide network of LEI allocation agencies, it will set new standards, and it will ensure data quality. However, to assign Legal Entity Identifiers will not be the task of GLEIF. This is done via the so-called Local Operating Units (LOUs). In Germany, WM Datenservice has been endorsed as one of the LOUs. Domestic and foreign financial market participants that are subject to financial reporting requirements may apply for a LEI at www.geiportal.org.

For more details (in German language), please click here: www.geiportal.org/wp-content/uploads/2014/10/Hessen-lockt-GLEIF-nach-Frankfurt.pdf

Communal Associations Require a LEI

Although the negotiations between communal associations and the German Financial Supervisory Authority (BaFin) have resulted in an EMIR exemption of such associations and their legally dependent municipal enterprises, they require a Legal Entity Identifier (LEI) if they want to make any OTC transactions..

For their financial reporting, banks always need the LEI of all contracting parties involved in OTC deals. Thus, also communal associations will have to obtain a LEI if they are engaging in OTC transactions.

It is less clear whether or not public sector institutions and special-purpose associations will be exempt from the EMIR requirement or not.There is the general presumption that such institutions do not meet the criteria of a company as defined by EMIR. But if they also engage in other activities, then the focus of such activities matters.

If the financial statements show that income from economic activities exceeds the income generated with activities that can clearly be associated with acts of public authority, an EMIR requirement applies. Income that cannot clearly be associated with either type of activity is not considered.

Municipally owned private-law enterprises can be classified as companies as defined by EMIR. Consequently, the EMIR requirement applies to them.

Geiportal.org Adopts LEI Common File Format

To enhance data quality, but also to be able to use LEI data in a more effective manner, all Local Operating Units (LOUs) worldwide have been required to publish their data in a standard file format, the LEI Common File Format (CFF).

Geiportal.org has implemented this requirement. On its website, it offers users to download the entire GEI data pool as .XML file in the new, uniform format (LEI-CFF). In addition, geiportal.org will continue to provide its data in the usual .XML files until the end of the year.

For more information on the structure of CFF, please read:

www.leiroc.org/publications/gls/lou_20140620_2.pdf

www.geiportal.org/wp-content/uploads/2014/08/lou_20140620.pdf

Use the following link for direct access to the LEI-CFF downloads

Certified Data Security

GEI portal has been awarded certificate for tested data security and effective data protection by TÜV Rheinland

As part of an independent and voluntary certification, TÜV Rheinland examined in detail the GEI portal’s data protection as specified by applicable data protection laws, the effective protection of personal data, precautions taken against unauthorized access, the level of transparency involved in the order process, and other features of the portal.

During this technical review, all important processes were analyzed and evaluated. In addition to examining data security and the technical and administrational aspects involved in the data processing, also the qualifications of the portal team members as well as customer service were subject to review. Data security and protection were tested locally by means of a data protection audit as well as through a simulation of targeted network attacks. The network penetration test employed the same methods used by hackers. The test report released by TÜV Rheinland confirmed that the GEI portal’s handling of sensitive data, i.e. its data processing and storage, is in compliance with the certification requirements for privacy and security.

Furthermore, targeted tests to unveil security weak spots were conducted. In this context, unauthorized access by third parties to sensitive data (credit card and customer information) and possibilities for data manipulation were tested.

It is important to note that this will not be a one-time certification. Annual reviews will guarantee that the GEI portal will maintain its high level of data protection and security. Read also: www.certipedia.com/quality_marks/0000040717

50,000 LEIs: Geiportal.org Increases Its Lead in Europe

Europe’s leading agency for the allocation of LEIs (Legal Entity Identifier) has assigned 50,000 LEIs – and with that has reached a new milestone. Florian Sicherl, Head of Product Development, states: “We are very happy with the demand for the first 6 months on 2014. Customers benefit from the easy process of self-registration and from the competent and fast service provided by our help desk.”

A New Pricing Structure for LEI Services

To maintain the high level of data quality mandated by the global LEI system, it is necessary to review the information saved for each GEI once a year. The information has to be accurate and up-to-date to meet the global LEI standards.
In accordance with Financial Stability Board (FSB) regulations, geiportal.org assigns LEI on a cost covering basis only. Due to the high demand, we are now able to even further reduce the price per LEI by EUR 10.
At the same time, we have to charge an amount of EUR 15, which will be used to finance the establishment and development of a Central LEI Operating Unit (COU) as well as a global LEI database.
On behalf of national supervisory authorities (www.leiroc.org), the COU will coordinate and monitor the global LEI system in the future.
For more information, please read:

GLEIF-Funding-Model-press-release.pdf

www.leiroc.org/publications/gls/gleif_20140629_1.pdf

LEI System Is Taking Shape: GLEIF Established

With the establishment of the Global LEI Foundation (GLEIF) – the central institution of the Global LEI System (GLEIS) – another crucial step in the development of the system has been taken. The goal is to clearly identify entities within the global financial system and to be able to more easily detect potential risks within that system.
Some of the main tasks of GLEIF will be to coordinate the activities of the Local Operating Units (LOUs) via the introduction of specific standards, to ensure LEI data quality, and to centrally publish LEI data.
www.leiroc.org/publications/gls/gleif_20140629_2.pdf

Name Change: Geiportal.org Now Assigns LEI Instead of Pre-LEI

With the establishment of the Global Legal Entity Identifier Foundation (GLEIF) in Basel starts a new chapter for the global LEI system, which has been in development for the past two years.
Effective immediately, all Pre-LEIs that have been assigned via geiportal.org will now be listed as LEIs. The agency specific term GEI (General Entity Identifier), which denotes a LEI that has been assigned via geiportal.org, will continue to be valid.
www.leiroc.org/publications/gls/gleif_20140629_1.pdf

In this context, we would like to refer to a current essay on the LEI system written by Dr. Pankoke (BaFin): http://www.bafin.de

LEI Common File Format Introduced – Implementation by August 19

In accordance with the principles of the Global LEI System (GLEIS), the parties involved in a financial transaction should be clearly and unequivocally identifiable. The requirements stipulated by ISO standard 17442 alone are not sufficient in this context.

To raise the level of data quality and to be able to effectively use the data collected worldwide, all Local Operation Units (LOUs) have been required to publish their data in a uniform format (LEI Common File Format).

Geiportal.org will implement the new LEI Common File Format by August 19, 2014. In addition, XML data file downloads will continue to be available until the end of the year.
www.leiroc.org/publications/gls/lou_20140620_2.pdf

GEI-Portal publishes Consolidated Data Feed (CDF)

Pre-LEIs are not only assigned on part of the GEI portal, but also by other authorized agencies. Details on all of these Pre-LEIs are available via the link “Download Consolidated XML”, which can be located in the GEI Search section of this page with help of the LEI INFO tab. The link provides access to da daily updated comprehensive file, which includes the total of all Pre-LEIs assigned.

ESMA has approved the first four trade repositories (TRs) under EMIR

The European Securities and Markets Authority (ESMA) has approved today the registrations of the first four trade repositories (TRs) under the European Market Infrastructure Regulation (EMIR).The registration of these TRs means that they can be used by the counterparties to a derivative transaction to fulfil their trade reporting obligations under EMIR. The registrations will take effect on 14 November 2013, with the reporting obligation beginning on 12 February 2014, i.e. 90 calendar days after the official registration date.

ESMA updated Questions & Answers on EMIR implementation

ESMA has published information on the use of pre-LEIs allocated by authorised pre-LOUs for the identification of counterparties within the scope of EMIR (see p.45 of the document) along with other information on the use of identifiers. Link to the complete document: http://www.esma.europa.eu/system/files/2013-1527_emir_questions_and_answers_2013_m10_d22.pdf

GEI-Portal is an endorsed Pre-LOU of the Interim Global Legal Entity Identifier System (GLEIS)

On October 3, the ROC published the endorsement of GEI-Portal. This means, that the codes WM Datenservice issue or has issued may be used for reporting and other regulatory purposes in the various jurisdictions represented in the ROC. For more details visit www.leiroc.org.

GEI-Portal publishes new ISO-XML-Datafeed

This format contains all datafields according to ISO 17442 standard and is provided since September 21, 2013.

  • News

    Central Securities Depositories require Issuers to have an LEI
    23.02.2018
    The EU Central Securities Depositories Regulation (CSDR) requires central securities depositories to have a Legal Entity Identifier (LEI) for each issuer of a... Read more.
    ESMA Grants a Transitional Period
    21.12.2017
    According to MiFID II (Markets in Financial Instruments Directive) and MiFIR (Markets in Financial Instruments Regulation) all counter parties of securities transactions... Read more.