This document details the changes in North Row Release V1.79
All investment and trading firms subject to MiFID II will now be able to access LEI data through NorthRow's single API as part of a Know Your Business Check (KYB), helping streamline client and entity onboarding.
What is a Legal Entity Identifier (LEI) code?
LEI is a 20-character, alphanumeric code based on the ISO 17442 standard developed by the International Organization for Standardization (ISO) that enables clear and unique identification of an entity that is issued with an LEI participating in financial transactions. Two integral principles of the LEI code are:
- Uniqueness: an LEI code assigned to a unique entity. Once assigned to an entity it should never be designate to another entity, even if an entity no longer exists.
- Exclusivity: a legal entity that has obtained an LEI code cannot obtain another one. Entities may port the maintenance of their LEI from one operator to another. The LEI remains unchanged in the process.
The Importance of Legal Entity Identifier (LEI) Data to MiFID II
To increase transparency, MiFID II established the requirement for persons that are legal entities or structures including companies, charities and trusts to have a unique LEI code.
LEI has been mandated by the European Securities and Markets Authority (ESMA) for the reporting of derivative transactions to Trade Repositories under European Market Infrastructure Regulation (EMIR). LEI data is crucial for supporting regulators’ activities in the area of market abuse supervision.
Under MiFID II and Market Abuse Regulation (MAR), all market operators are required to collect an LEI code for each issuer with securities admitted to trading.
All investment firms subject to MiFID II will be mandated to retain a valid LEI. Firms subject to the MiFID II transaction reporting obligations will not be able to execute a trade on behalf of a client who is eligible for an LEI and does not have one.
To check a company for a LEI, first create Company Check:
- Create a new Company Check, either from Quick Search from the Check Menu > Business & Contacts
- Populate the various fields in the Company Check as necessary
- Select the Profile configured for LEI
- Perform the Company Check by pressing the Check Business button
- Wait for the check to complete
- Examine the Score tab and look for the LEI Found or Not Found rule.
- Switch to the Data tab and expand the Legal Entity Identifier (LEI) Record node to view the associated LEI data.
- To view the Northrow PDF Report, switch to the Score tab and click on the PDF icon.
- A new web browser window opens displaying the Northrow PDF report.
- The report shows the same list of alerts / rules that were displayed on the Data tab of the user interface.
- Scroll down the report to the section entitled Legal Entity Identifier (LEI) Record.
- This section contains the same LEI record that was shown on the user interface.
If you would like to add this data to your current profile please contact us on 01235 375 111 or send us an email to firstname.lastname@example.org