What Is an LEI? The Legal Entity Identifier Explained
Quick Answer
A Legal Entity Identifier (LEI) is a unique 20-character alphanumeric code (ISO 17442) assigned to any legal entity that participates in financial transactions. It acts as a global "business ID" maintained by the Global Legal Entity Identifier Foundation (GLEIF). Over 2.7 million LEIs are registered across 200+ countries. LEI Search is provided by LEI Worldwide, an official GLEIF Registration Agent.
How an LEI Works
Each LEI maps to a publicly available reference dataset that includes the entity's official name, registered address, jurisdiction, direct and ultimate parent entities, and registration status. The data is refreshed annually when the LEI is renewed.
Structure of an LEI Code
An LEI code follows a fixed 20-character structure defined by ISO 17442:
| Characters | Field | Purpose |
|---|---|---|
| 1–4 | LOU Prefix | Identifies the Local Operating Unit that issued the LEI |
| 5–6 | Reserved | Always "00" (reserved for future use) |
| 7–18 | Entity ID | Unique entity-specific alphanumeric characters |
| 19–20 | Check Digits | Calculated using ISO 7064 (Mod 97-10) for validation |
Who Needs an LEI?
Any legal entity trading in OTC derivatives, equities, or bonds within regulated markets typically requires an LEI. This includes corporations, investment funds, trusts, government bodies, and non-profit organisations. Key regulations mandating LEIs include:
- EMIR / EMIR Refit – European derivatives reporting
- MiFID II / MiFIR – Transaction reporting across EU markets
- DORA – Digital Operational Resilience Act for ICT providers
- Dodd-Frank Act – US swap data reporting
- SEC Rule 17a-25 – US securities transaction reporting
How to Get an LEI
LEIs are issued by GLEIF-accredited Local Operating Units (LOUs). You can apply directly through a Registration Agent like LEI Worldwide. The process typically takes 24 hours and costs between €50–€90 per year depending on the provider and multi-year options.
How Often Must LEIs Be Renewed?
LEIs must be renewed annually to remain active. If an LEI lapses, its status changes to "LAPSED" in the GLEIF database—it doesn't disappear, but the reference data is no longer validated. Many regulations require an active LEI for transaction reporting. Check your LEI status or find your renewal date.
Why LEIs Matter
Before LEIs, regulators struggled to trace counterparties across borders. The 2008 financial crisis highlighted this gap. Today, over 2.7 million LEIs are registered across 200+ countries, enabling regulators, banks, and compliance teams to instantly identify entities involved in any financial transaction.
Frequently Asked Questions
What is an LEI number?
A Legal Entity Identifier (LEI) is a unique 20-character alphanumeric code (ISO 17442) assigned to any legal entity participating in financial transactions. It acts as a global 'business ID' maintained by GLEIF.
Who needs an LEI?
Any legal entity trading in OTC derivatives, equities, or bonds within regulated markets. This includes corporations, investment funds, trusts, government bodies, and non-profits under regulations like EMIR, MiFID II, and Dodd-Frank.
How much does an LEI cost?
An LEI typically costs between €50–€90 per year depending on the provider. Multi-year options (2, 3, or 5 years) are available at discounted rates through Registration Agents like LEI Worldwide.
How long does it take to get an LEI?
LEI registration through an official Registration Agent like LEI Worldwide typically takes 24 hours. The LOU validates entity data against official registries before issuing the code.
What happens if my LEI lapses?
If an LEI is not renewed annually, its status changes to LAPSED. The LEI still exists but regulators may reject transaction reports referencing it. A lapsed LEI can be reactivated at any time by paying the renewal fee.
How often must an LEI be renewed?
LEIs must be renewed annually. During renewal, the entity's reference data (name, address, ownership) is re-validated. Some providers offer multi-year renewals for 2–5 years.
What is the structure of an LEI code?
An LEI is a 20-character alphanumeric code: characters 1–4 identify the issuing LOU, 5–6 are reserved digits (00), 7–18 are entity-specific characters, and 19–20 are check digits calculated using ISO 7064 (Mod 97-10).
Related Tools
- LEI Search Tool – Look up any entity by name or LEI code
- LEI Lookup by Name – Find LEIs using entity names
- GLEIF Database Explained – How GLEIF data works
- LEI vs CRN – How LEIs differ from registration numbers