A Legal Entity Identifier (LEI) is a unique, 20-character code that identifies legal entities participating in financial transactions.
The LEI system was created after the 2008 financial crisis to improve transparency in global markets.
How the LEI system works
The LEI system is overseen by:
GLEIF (Global Legal Entity Identifier Foundation) – maintains the global database
LOUs (Local Operating Units) – such as NordLEI, issue and manage LEIs
Registrants – legal entities applying for or renewing their LEI
All LEIs follow the ISO 17442 standard.
What an LEI contains
Each LEI record includes two types of data:
Level 1: Who is who?
Basic business identity information such as legal name, address, company number, legal form.Level 2: Who owns whom?
Parent company information when applicable.
Example
A typical LEI looks like this, for example this is NordLEIs LEI:
549300O897ZC5H7CY412
Where LEIs are used
LEIs are required or recommended for:
Financial reporting
Trading in certain instruments
Regulatory filings
Banking/KYC processes