Legal Entity Identifier application
Regulation (EU) 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (EMIR) entered into force on 16 August 2012 and requires financial service providers to identify clearly, with a unique identifier, the trading counterparties in the mandatory derivative reports.
EMIR recommends the use of the so-called Legal Entity Identifier (LEI) for identification. The LEI is an international code of 20 characters that serves to identify distinctly the counterparties (banks, issuers, listed companies, exchange traders, investment funds, etc.) of financial transactions worldwide.
The issuers (Local Operating Unit – LOU) approved by the Legal Entity Identifier Regulatory Oversight Committee (LEIROC) is authorized to issue the LEI.
KELER contracted WM Datenservice, Germany to assist Hungarian market participants in obtaining the LEI codes required for reporting.
Based on the contract all market players, including local or foreign players, can apply for LEI codes through KELER, at preferential rates. The LEI codes need to be applied for and renewed annually.
Benefits of LEI application through KELER:
- Applications can be submitted to KELER in e-mail, in an excel spreadsheet, thus the process of application is accelerated and simplified;
- Before forwarding to WM Datenservice KELER checks each application to ensure that the application contains correct data;
- The applicant can apply for LEI through KELER not only in its own name but on behalf of members of the same group of companies also,
- KELER actively supports LEI renewal also by contacting the issuer at least one month prior to expiry in order to ensure that renewal is completed in time;
LEI codes issued by any LEI code issuer can be renewed through KELER, based on the client order KELER completes the related tasks.