With the passing of the original deadline in January, The European Securities & Markets Authority (ESMA) have granted a 6 month grace period to allow market participants another opportunity to become compliant with one of the most important aspects of the Mifid II regulation, to obtain a Legal Entity Identifier number.
The deadline extension allows banks to conduct reportable transactions without an LEI, however other legal forms have also been using this as a means of performing transactions. This of course, is a temporary fix. One thing we learned here at LEI Worldwide last January was the number of legal entities applying for an LEI number rose dramatically. In the ten days in the lead up to January 2018, Global LEI saw a 62% increase in orders, compared to the final ten days of November 2017.
Contracting authorities such as The London Stock Exchange, and Bloomberg notified entities applying that they were not guaranteed to make the deadline if they did not complete the application process from the 13th December 2017. Nevertheless, the number of applications continued to pile up. Contracting authorities such as GMEI Utility and EQS made a ‘SAME DAY’ registration option possible, which guaranteed you application would be complete within 24 hours.
With well over 1 million LEI Numbers now issued, and with Summer just around the corner, it is advised that if you require an LEI Number you register as soon as possible. It is not likely that the deadline will be extended again, and ESMA may not show the same grace to non-compliant entities, who will face a “no LEI, no trade” ruling. If you require an LEI number in a hurry, contact one of our experts for advice on a SAME DAY LEI, to receive you LEI number within 24 hours.
Alternatively, register your legal entity today and become MifiD II compliant by filling out our LEI registration form here. One of the benefits of registering with LEI Worldwide is that you can register an entity from any country in the world and your LEI number will be globally recognised, fully active and MifiD II compliant within 24 hours.
To find out more information, or if you require an LEI Number, please contact our registration team at firstname.lastname@example.org.
The views expressed in this blog belong to LEI Worldwide.