LEItunnisteet

LEItunnisteet, often translated as "LEI identifiers," are unique alphanumeric codes used globally to identify legal entities participating in financial transactions. The Legal Entity Identifier Regulatory Oversight Committee (LEIRGC) oversees the LEI system, which was developed in response to the 2008 financial crisis to improve transparency and reduce systemic risk in the global financial markets.

Each LEI consists of 20 characters. The first four characters identify the Local Operating Unit (LOU) that issued the LEI. The next two characters are always zero. The remaining characters are a combination of numbers and letters assigned uniquely to the legal entity by the issuing LOU. LEI data is publicly accessible through the Global LEI System (GLEIS) database, allowing for the identification of entities involved in various financial activities, including derivatives, securities, and cross-border transactions. This standardization helps regulators and market participants to better understand counterparty relationships and potential risks within the financial system.