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LEI Transition Period Ends

June 21, 2018

What has happened?

The temporary period allowing for a smooth introduction of the use of Legal Identity Identifiers (LEIs), originally brought in in December 2017, will not be further extended and will cease in July 2018, the European Securities and Markets Authority (ESMA) confirmed on 20th June. See full details here.

Reporting firms have to use LEIs to report trades under the Markets in Financial Instruments Regulation (MiFIR). The six-month period was introduced due to the fact that not all firms succeeded in obtaining LEIs in time for the MiFID II start. ESMA and National Competent Authorities (NCAs) have since observed a significant increase in LEI coverage for both issuers and clients. Based on these observations, ESMA and NCAs have concluded that there is no need to extend the initial six-month period granted to support the smooth introduction of the LEI requirements under MiFIR. The temporary period will last until the 2nd July 2018 inclusive.

The end of the six-month period means that NCAs’ activities with respect to the LEI requirements are now shifting from monitoring to ongoing supervisory actions. To ensure a high degree of supervisory convergence and the full application of MIFIR, ESMA and NCAs are coordinating the development of an appropriate and proportionate common supervisory action plan focused on compliance with the LEI reporting requirements under the respective MiFIR provisions.

  • How can Thistle help you?

    Thistle will continue to keep the LEI position under review and will issue further updates where necessary.