The LEI in numbers: Improving data quality with new LEI data formats

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The Global LEI Foundation (GLEIF) is proud of its ongoing transparency initiatives. This includes its open approach to providing unrestricted access to the latest LEI data from around the world through the LEI System’s quarterly annual reports, which are made available to the public free of charge. GLEIF aims to highlight key data from the latest report, explain trends and showcase the successes of the global LEI rollout.

The latest report, which covers the second quarter of 2022, highlights that over 56,000 LEIs were issued globally this quarter, representing a growth rate of 2.8%. This brings the total number of active LEIs to 2.07 million.

For a further summary of last quarter’s data, please see the infographic below with key statistics from Q2 2022.

Accelerating transparency and trust in the global marketplace

So-called “competitive markets” refer to markets with more than 1,000 LEIs, based on the number of LEI issuers offering services in the respective country. The most competitive markets are those with the most LEI issuers per country and a similar market share, and conversely the least competitive markets.

The second quarter report is the first to include data from the new LEI data formats described in the latest ROC guidelines. These new formats have expanded the scope of data included in each LEI, resulting in even more transparency in the global market and increasing the usefulness of the global LEI system for all users.

First, the changes allow for a structured classification of public sector entities, so that certain legal entities can be classified as “General Government Entities” or “International Organizations”. In the second quarter, nearly 4,000 government entities and 14 international organizations were reported.

Second, the new LEI formats now require the inclusion of event data for legal entities. This enhancement will ensure that the Global LEI System provides the most accurate and up-to-date information on legal entities as they evolve and will allow users of the GLEIS to identify and track specific events that update or change either the entity itself or its legal relationships with other entities. Over time, this will lead to old LEIs being retired and new ones being created, both by simple events such as a change of name or a change of legal form of a legal person, and by more complex events such as reverse takeovers, mergers and acquisitions.

Finally, by updating the way corporate relationships affecting investment funds are recorded, the new data formats also facilitate the standardized collection of information on fund relationships at the global level. Last quarter’s figures show that more than 57,000 legal entities reported fund relationships for three different types of fund relationships: Fund Management Entity (75.6%), Umbrella Structure (23.9%) and Master-Feeder relationships (0.5%).

The new guidelines have already had a significant impact and have been welcomed by the industry.

“As an accredited issuer of LEIs, Bloomberg welcomes the new common data formats,” said Steve Meizanis, Global Head of Symbology and LEI Services at Bloomberg. “The additional data collected in connection with investment funds, government agencies and corporate events will enable the LEI to meet the evolving industry requirements for identifying companies. GLEIF are proud to be part of the global effort to introduce LEIs, improve the quality of financial data and bring greater transparency and consistency to capital markets.”

The full report, which provides further details on the status of LEI issuance and growth potential, the extent of competition among LEI issuing organizations in the global LEI system, and Level 1 and Level 2 reference data, can be found on the Global LEI System Annual Reports page.

Readers are reminded that the CDF formats were updated in March 2022 based on the Regulatory Oversight Committee (ROC) guidelines: Legal Entity Events (formerly referred to as “Corporate Actions”) and Data History in the Global LEI System, Policy on Fund Relationships and Guidelines for the registration of Investment Funds in the Global LEI System, and LEI Eligibility for General Government Entities Guidance Document.

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