Do you need a legal entity if you are engaged in trading
If you are engaged in financial transactions, there is a good chance that you will need to obtain a legal entity identifier LEIif you have not already done so.
Background The LEI was introduced globally in response to the financial crisis and permits immediate and accurate identification of all parties to a financial transaction. As well as serving as a management tool in analysing counterparty risk, the global LEI system GLEIS can help contain market abuse and curtail financial fraud.
Under EMIR, all trade reports to TRs must, from 1 Novemberidentify entities by their LEIs: interim entity identifiers are no longer a valid means of identification from that date. MiFIR imposes transaction reporting obligations on certain entities, including inscope investment firms and operators of trading venues. Consequently, from 3 Januarya reporting entity will not be able to provide a service that would result in a transaction reporting obligation where the relevant client is eligible for a LEI and does not have one.
A legal entity is not limited to using a LEI issuer in its own country; instead, it can use the registration services of any LOU that is accredited and qualified to validate LEI registrations within its authorised jurisdiction s.
Each legal entity is required to recertify its LEI annually to ensure the data is correct.