Information on the use of LEI(s) communication released by ESMA
KELER Ltd is pleased to provide the information below, in line with the communication released by the European Securities and Markets Authority (ESMA) on 21st of June, 2018.
The temporary period allowing for a smooth introduction of the use of Legal Identity Identifiers (LEIs), originally brought-in in December 2017, will not be further extended and cease in July 2018, the European Securities and Markets Authority (ESMA) confirmed today.
Reporting firms have to use LEIs to report trades under the Markets in Financial Instruments Directive (MiFID II) / Markets in Financial Instruments Regulation (MiFIR). The six months period was introduced due to the fact that not all firms succeeded in obtaining LEIs in time for the MiFID II/MiFIR start.
ESMA and National Competent Authorities (NCAs) have since observed a significant increase in the LEI coverage for both issuers and clients. Based on these observations, ESMA and NCAs have concluded that there is no need to extend the initial six month period granted to support the smooth introduction of the LEI requirements under MiFID II/MiFIR. The temporary period will last until the 2nd July 2018, including.
Next steps
The end of the six month period means that NCAs’ activities with respect to the LEI requirements are now shifting from monitoring to ongoing supervisory actions. To ensure a high degree of supervisory convergence and the full application of MiFID II/MiFIR, ESMA and NCAs are coordinating the development of an appropriate and proportionate common supervisory action plan focused on compliance with the LEI reporting requirements under the respective MiFID II/MiFIR provisions.
Please, note that in line with the expectations of ESMA regarding the requirements of the Central Securities Depositories Regulation (CSDR), KELER is required to validate that the LEIs provided by issuer clients are the identifiers of the appropriate legal entities and the identifiers are valid. Accordingly, all the issuer clients of KELER are required to have valid LEI. Please, note that KELER offers LEI code issuance and renewal services that enables issuer clients being compliant to the legal requirements.