The EU has four-and-a-half times as many firms with legal entity identifiers as does the US, giving Europe more tools for monitoring banks’ and funds’ risk exposure, new data show.
A global authority report shows that European rules dating to 2012 that require firms to obtain the ID tags have powered EU adoption of the codes.
“We expect regulatory action to remain one of the drivers of global LEI adoption,” Global Legal Entity Identifier Foundation chief Stephan Wolf said in an e-mail to MLex on Friday.
Most US rules leave it to firms’ discretion to obtain a 20-digit LEI or require them to use the tag only if they already have one, the recent progress report by the LEI Regulatory Oversight Committee shows.
Europe has many more LEIs than does US, driven by years of government requirements
16 May 2018 2:55pm