Who needs an LEI
Derivatives Trading and Australian Regulations
Organisations needing to comply with financial reporting requirements under ASIC Derivative Transaction Rules (Reporting) 2013 and/or APRA Reporting Standard ARS 221.0 Large Exposures:
ASIC Derivative Transaction Rules (Reporting) 2013
Requires LEI as the first of a waterfall of acceptable identifiers for entities (internal codes used for individuals). ASIC Corporations Instrument 2015/884 Derivative Transaction Reporting Exemption, granted in September 2015 provides exemptive relief from the requirement to report a standard identifier where it is not held by the party making the report (Conditional on the reporting of an internal identifier). This relief expires on 30 September 2018.
APRA Reporting Standard ARS 221.0 Large Exposures
Banking supervision: LEIs are requested for instance for twenty largest exposures and all those exposures exceeding or equal to 10% of Tier 1 Capital. Concerning government-related entities: twenty largest exposures and all those exposures exceeding or equal to 5% of Tier 1 Capital. The rule instructs to report the LEI of the counterparty for each exposure or the LEI of the principal counterparty if the exposure is to a group of connected counterparties. Otherwise, report N/A if the counterparty or principal counterparty has no LEI
Derivatives Trading and the European Market Infrastructure Regulation (EMIR)
Since February 2014 any organisation participating in the trade of derivatives and who is required to comply with the EMIR (European Market Infrastructure Regulation) is required to have a mandatory LEI.
Compliance with the European MiFID II/MiFIR regulation
As of January 2018, in accordance with the new European MiFID II/MiFIR regulation (Art.26 of Regulation nr.600/2014), European financial institutions must notify their national financial services authority / regulator of all transactions carried out relating to certain financial instruments.
Each legal entity, active in trade of financial instruments offered on a trading platform (or underlying products being exchanged on a platform), such as shares, bonds, warrants, state loans, warrants, state loans and state notes is required to be identified with an LEI. (This measure does not apply to some investments, investment insurances, term deposits, deposits and savings certificates products.)
All legal entities wishing to purchase or sell one of the above mentioned financial instruments, is required to identify itself by an LEI. The legal entity is responsible for obtaining its own LEI.
Register for an LEI
LEI fact sheet