Why is LEI Significant?

The LEI system was born out of the 2008 financial crisis, a historical business event that shed light upon the dire need for transparency and improved risk management in financial transactions. The Global Legal Entity Identifier Foundation (GLEIF), the organization behind LEI, intends to promote transparency in the global marketplace by enabling clear and unique identification of legal entities involved in financial transactions.

Process of Obtaining a LEI Number

The process of obtaining a LEI number, often conducted through an online LEI registration process, can be broken down into simple steps:

• LEI search: Before applying for a new LEI, entities should perform an LEI search or LEI lookup to ensure they do not already have one. Several platforms, including Bloomberg LEI, offer comprehensive search options.
• Application: If an entity does not have an existing LEI, the next step is to apply for a new one. This process involves providing essential information about the entity, including its official name, headquarters address, and legal form.
• Validation: Once the application has been submitted, the information provided is validated against reliable and independent sources.
• Allocation: After successful validation, the LEI number is issued. It is a unique 20-digit alphanumeric code that is stored in the GLEIF database and is accessible for public LEI lookup.

Importance of LEI Number Search and LEI Lookup

LEI number search or LEI lookup is integral to the LEI system. It serves two primary functions:

• Prevents duplication: A thorough LEI search before applying for a new LEI prevents duplication. Tools like the Bloomberg LEI search make this process more streamlined.
• Facilitates identification: An LEI lookup allows entities and regulators to identify parties involved in financial transactions. This process enhances transparency, reduces risk, and simplifies entity identification.

LEI Checker and Tools for LEI Code Search

Various online tools, known as LEI checkers, facilitate the LEI code search process. These tools, such as the Bloomberg LEI checker, allow entities to verify if they have an existing LEI, check the status of their LEI, or perform an LEI lookup for other entities.

The Connection between LEI and Asfaleies

Asfaleies, an important Greek word meaning ‘insurance’, has a connection with LEI. Given the financial transparency that LEIs ensure, they are often linked to the concept of ‘insurance’ in the financial world. By providing a means of clear and unique identification, LEIs serve as a form of risk mitigation ‘insurance’ for financial transactions. There are even platforms offering Asfaleies online services that highlight the importance of LEI in the realm of financial security.In essence, the LEI system, with its unique identification system, is an innovative solution to major challenges faced by the global financial market. It fosters transparency and risk management, thereby playing an indispensable role in today’s financial landscape.