Legal Entity Identifier (international code for identifying a legal entity, LEI) – a unique code (identifier) assigned to a legal entity in accordance with international standard ISO 17442 and used in transactions and reporting on financial markets.

The international supervisory body that regulates the assignment of codes and controls the maintenance of the global legal entity identification system (Global LEI System, GLEIS) is the Regulatory Oversight Committee (ROC), established under the Financial Stability Board (FSB). ROC, in turn, established the Global LEI Foundation (GLEIF) – an organization tasked with maintaining and developing GLEIS, as well as accrediting companies aspiring to perform the functions of Local Operating Units (LOU) for assigning and servicing LEI codes.

Work on introducing unified international coding and identification standards for financial and stock market objects, aimed at unifying data exchange formats between international market participants, has long been conducted by the international community, in particular, by countries belonging to the Group of Twenty (G20).

The global crisis of 2008–2009 made adjustments to this work, adding to the need for unification of financial transaction formats the necessity of increasing transparency of companies participating in these transactions, which will allow regulators and supervisory authorities to increase control and manageability of systemic risks in the financial market.

To solve this task, G20 decides to create a global legal entity identification system, which should allow not only to identify participants of financial transactions, but also to assess transaction financial risks based on information about the company stored in the global GLEIS system and regularly updated by the company. G20 tasked the Financial Stability Board to develop an international infrastructure that, under ROC control, will ensure the solution of these tasks.

The LEI code allows unambiguous identification of a legal entity both at the local market level (in particular, Russia) and when conducting transactions in other countries and at the international level.

NSD is one of the Local Operating Units (LOU) accredited by GLEIF to assign LEI identification codes. NSD received accredited LOU status on January 05, 2018, replacing the temporary status (pre-LOU). NSD performed pre-LOU functions since March 1, 2013. The pre-LOU status was obtained by NSD with the support of Russian government bodies participating in ROC's work on creating GLEIS.

The LEI code is assigned to a legal entity only upon its request or upon request of persons authorized by it.

LEI codes assigned by NSD are posted on the website www.lei-code.ru, as well as in the international database GLEIF, to which NSD transfers them in the format established by GLEIF.

Data available in the public domain includes, in addition to the LEI code, basic information about the legal entity defined by ISO 17442 standard, including official name, registration address and other data. Level 2 information about parent companies of LEI holders and their connections with subsidiary companies through LEI codes is also disclosed.

NSD, playing a key role in the Russian market, has information on virtually all Russian legal entities conducting certain financial transactions. Based on the corresponding request of legal entities, this information can be used to assign them an LEI code and maintain the identifier in an up-to-date state in the global legal entity identification system.

Using the LEI code allows:

• Minimize the probability of errors when conducting transactions.

• Simplify procedures for providing reporting to market regulators.

• Unambiguously identify counterparties, issuers and other financial market participants.

The LEI code is specified:

• as an international identification code when compiling lists of securities owners and lists of persons exercising rights to securities.

  In accordance with Federal Law dated 22.04.1996 N 39-FZ "On the Securities Market" (hereinafter – the Law), when compiling lists of securities owners and lists of persons exercising rights to securities, the obligation to specify the international identification code of the person accounting for securities rights of securities owners and persons exercising rights to securities is provided. Detailed information on the procedure for using the international identification code is provided in Articles 8.6-1, 8.7-1 of the Law, as well as at the link.

• as an international identification code of legal entities when reporting on off-exchange REPO and DFI transactions.

  In accordance with paragraph 13 of Bank of Russia Instruction dated 16.08.2016 No. 4104-U (hereinafter – Bank of Russia Instruction 4104-U), the Repository refuses to enter information into the contract register in the absence of an LEI for the contract party obligated to provide transaction information to the Repository or in the absence of an LEI for the Informing Person. Detailed information on NSD Repository, the procedure for reporting data on off-exchange REPO and DFI transactions is available at the link.

• As an international identification code of a non-resident issuer in reports to the Bank of Russia on portfolio investments in foreign securities.

  In accordance with Bank of Russia Instruction dated 25.11.2019 No. 5328-U (hereinafter – Bank of Russia Instruction 5328-U), when submitting a report on portfolio investments in foreign securities, the respondent specifies (if available) a twenty-digit international legal entity identification code (LEI) for non-resident issuers. Detailed information on the procedure for using LEI is provided in Chapter 4 of Bank of Russia Instruction 5328-U.

The use of the LEI code is also provided for by other regulatory acts of the Russian Federation. Detailed information in the legislation of the Russian Federation

Detailed information on the procedure for obtaining an LEI code can be found on the website www.lei-code.ru.