Introduction:

LEI code stands for Legal entity identifier code.
A unique identification code for entities which trade in financial markets.
Every deal conducted in the markets will connect to the other counterpart with an LEI.

Function:

The LEI is to facilitate Know your Customer (KYC) compliance and provide customers with immediate certainty and authentication that the credentials of their trade counterparts are verified and trustworthy.
To provide customers with real-time access to the unique identification data of legal entities participating in their trade finance transactions.
The readily available and verified information covering detail such as ownership structure and subsidiary addresses will reduce the time currently spent by financiers and corporates on KYC checks as part of the transaction lifecycle, further improving operational efficiencies and driving trade growth.

Issuance of LEI is governed by Global Legal Entity Identifier Foundation (GLEIF).The GLEIF is the foundation which controls the issuance of LEIs.

The Legal Entity Identifier (LEI) is a 20-character, alpha-numeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO). It connects to key reference information that enables clear and unique identification of legal entities participating in financial transactions. Each LEI contains information about an entity’s ownership structure and thus answers the questions of 'who is who’ and ‘who owns whom’. Simply put, the publicly available LEI data pool can be regarded as a global directory, which greatly enhances transparency in the global marketplace.