27 Nov, 2017 (Updated 05 Dec, 2017)
Get your LEI code in time – reduce your business risk and contribute to financial market transparency
New regulation is being introduced to further protect investors and January 3, 2018 is the go-live date for Markets in Financial Instruments Directive or, MiFID II.
MiFID II has been developed to increase transparency in the post-trade landscape. It will have a significant impact on how firms trade and report within the EU. Even global firms that choose to trade with firms within the EU will be affected. At Nordea we have the ambition to ensure we, and our clients comply with MiFID II. Some new procedures will impact you, our clients. One significant introduction is the concept of “No LEI no trade”.
Corporate clients will need an Legal Identifier Code (LEI) that uniquely identifies them as a legal entity. You will need a LEI code to be able to trade many of the most common financial instruments in the EU after January 3, 2018. If you already have a LEI code you only need to register your LEI with Nordea. Your guide to obtain a LEI code:
Without an LEI code, Nordea will not be able to execute orders on your behalf after January 3, 2018, hence the concept “No LEI, no trade”.
What is an LEI code?
An LEI is unique code to that legal entity or structure. When an LEI code is allocated to you, the code is included in a global data system. This enables every legal entity or structure that is party to a financial transaction to be identified.
The LEI code itself is a 20-digit reference number to uniquely identify parties in financial transactions worldwide, throughout all markets and legal systems.
Who needs an LEI code?
Any legal entity that wants to place an order in securities needs an LEI code. Some instruments are excempted: Foreign exchange spot and money markets deposits. Private individuals are exempt and cannot receive an LEI code.
To read more on how to obtain and submit an LEI code before deadline, please visit www.nordeamarkets.com/lei.
If corporate clients don’t have a LEI code, they need to acquire an LEI code from one of the official LEI Codes issuers.
When the LEI code has been issued, corporate clients must submit their LEI code to Nordea.
Once Nordea has validated and registered the LEI code, corporate clients can continue to trade financial products.
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